New Delhi: Amidst the ongoing controversy surrounding the company, Adani Enterprises will be removed from the Dow Jones Sustainability Indices before February 7.
This news became public a day after the National Stock Exchange put three Adani stocks – Adani Enterprises, Adani Ports and Ambuja Cements – under the additional surveillance measure. “There shall be Additional Surveillance Measures (ASM) on securities with surveillance concerns based on objective parameters viz. Price / Volume variation, Volatility etc,” NSE said on its website.
Stocks of the Gautam Adani-led Adani group have been crashing ever since the release of a damning report from short-seller Hindenburg Research, which accused the group of “pulling the largest con in corporate history” by engaging “in a brazen stock manipulation and accounting fraud scheme over the course of decades”.
“Adani Enterprises (XBOM: 512599) will be removed from the Dow Jones Sustainability Indices following a Media & Stakeholder Analysis triggered by allegations of stock manipulation and accounting fraud,” the S&P Dow Jones Indices said, announcing this decision.
“S&P Dow Jones Indices will make the following changes to the Dow Jones Sustainability Indices, effective prior to the open on Tuesday, February 7, 2023,” the Index announcement added.
Controversy around the Adani group has been unravelling at a rapid pace over the last few days. On Wednesday, Adani Enterprises said it has decided to call off its fully subscribed Rs 20,000 crore ($2.5 billion) follow-on public offer (FPO).
Reports early on Thursday indicated that the Citigroup Inc.’s wealth arm has stopped accepting securities of Gautam Adani’s group of firms as collateral for margin loans, shortly after a similar decision by the Credit Suisse Group AG.
According to Livemint, Adani Enterprises share price on NSE has fallen from Rs 3,442 to Rs 1,565 apiece levels in the last six session, logging around 55% fall.