Adani fallen 85% this year, reaches Hindenburg’s target price

In a recent news report by Bloomberg, it was highlighted that Adani Total Gas Ltd has experienced a substantial 85% drop in its stock valuation, aligning with the earlier prediction made by Hindenburg Research, a US-based short seller. This makes Adani Total Gas Ltd the first among the seven listed companies in the Adani Group to reach this price level. On a specific Monday, the shares of Adani Total Gas Ltd witnessed a 2.6% decline, reaching a trading price of 575.7 rupees. This extended the overall loss from the stock’s closing value on January 24, which stood at 3,891.75 rupees.

Adani Ports to JPMorgan to FedEx

It’s worth noting that Adani Total Gas Ltd has been notably more affected by this decline compared to other Adani entities. While bonds and shares of other Adani companies have displayed signs of recovery, Adani Total Gas Ltd continues to face challenges, despite securing funding from GQG Partners. Additionally, the government of New Delhi has recently introduced a policy mandating the conversion of all commercial vehicles to electric ones by the year 2030. This policy change presents a fresh challenge for Adani Total Gas Ltd, given its primary involvement in the city gas distribution sector.

Kailash Gahlot, Delhi’s Transport Minister, has stressed that the Electric Vehicles Policy 2.0 is the final version, with a primary focus on transitioning commercial vehicles to electric power sources in order to combat pollution in the capital city. He has made it clear that the complete shift to electric vehicles is expected by or after 2030. In discussing Electric Vehicles Policy 2.0, Kailash Gahlot has also mentioned that the policy will explore methods for incentivizing vehicle retrofits, especially considering the high costs associated with the adoption of electric vehicles.

On January 24, a report from Hindenburg Research alleged significant corporate misconduct by the company, resulting in a massive drop in the company’s market value, which had surpassed $150 billion at one point. The Adani Group swiftly refuted all the allegations, releasing a media statement expressing surprise that Hindenburg Research had published the report “without any effort to reach out to the company or verify the accuracy of the facts.” In their statement, the company described the report as a malicious amalgamation of cherry-picked misinformation and outdated, unsubstantiated, and discredited claims that had been examined and dismissed by the highest courts in India. An earlier report by a panel appointed by the Indian Supreme Court in May found no evidence of stock price manipulation.