Adani Group's Struggles Continue: Shares Plunge, Auditors Seek Information

In a tumultuous day for the Adani Group, all ten of its associated companies are experiencing significant losses in stock trading as of Thursday, October 26. The stock prices have collectively slumped between 2% and 7%, raising concerns among investors.

Image Source -www.thehindubusinessline.com

In a tumultuous day for the Adani Group, all ten of its associated companies are experiencing significant losses in stock trading as of Thursday, October 26. The stock prices have collectively slumped between 2% and 7%, raising concerns among investors.

The flagship company, Adani Enterprises, is particularly hard-hit, with a 3% decline, marking its ninth consecutive day of losses. This situation is reminiscent of a similar nine-day losing streak experienced in March 2020.

Adani Ports, another key company within the conglomerate, is also facing a downturn, with losses exceeding 1.5%. This comes after eight out of the last nine trading sessions saw declining stock prices.

Adani Total Gas, one of the group's entities, witnessed a substantial drop of over 5% in its stock value on Thursday. Trading volumes have doubled in comparison to its 20-day average, and the stock is now at a two-year low. Over the past year, it has lost nearly 85% of its value.

Adani Green Energy, too, has seen its shares decline by over 4%, reaching the lowest level in over six months. It is now the worst-performing stock among its peer companies. The trading volumes on this stock are notably 53% higher than its 20-day average.

Also Read: Sunil Gavaskar Turns Admiration After Criticism For Maxwell's Record-Breaking Ton

On Wednesday, October 25, reports emerged that the National Financial Reporting Authority (NFRA) had reached out to all past auditors of the Adani Group, seeking information on more than 100 questions. Among the inquiries were those related to issues like transactions involving related parties.

One of the auditors was specifically requested to present audit files dating back to previous years up to the financial year 2022.

In addition to these challenges, Adani Enterprises is gearing up to release its September quarter results on November 2, as disclosed in an exchange filing. The future of the Adani Group's stocks remains uncertain, and investors are closely watching how the situation develops.