Adani Group shares saw a massive market value erosion since January 24 this year. Adani Group shares saw a massive market value erosion since January 24 this year. Adani Group shares saw a massive market value erosion since January 24 this year. All 10-listed Adani Group stocks traded lower in Wednesday's session. Shares of Gautam Adani-led conglomerate's flagship firm, Adani Enterprises, fell 6.98 per cent to hit a day low of Rs 1,786.10 over its previous close of Rs 1,920.05. Adani Wilmar, Adani Power, Adani Total Gas and Adani Green Energy fell as much as 6.11 per cent. In addition, Adani Ports, Adani Transmission, Ambuja Cement, ACC and NDTV tanked up to 4.66 per cent today.
The fresh weakness in Adani stocks came after Ahmedabad-based chartered accountancy (CA) firm Shah Dhandharia & Co resigned as statutory auditor of Adani Total. However, there's no such update from Adani Enterprises at the time of writing this story. Shah Dhandharia was named in Hindenburg Research's report.
The audit firm has been replaced by Walter Chandiok & Co.
Adani Group shares saw a massive market value erosion since January 24 this year, when US-based short seller Hindenburg Research released a report alleging stock manipulation and accounting fraud by the energy-to-ports conglomerate. The US-based short seller had also raised the issue of the size and capability of the CA firms (including Shah Dhandharia) auditing the Adani Group. Adani and Shah Dhandharia, however, denied all the allegations.
The stocks then staged a recovery after US boutique investment firm GQG Partners announced a cumulative investment of Rs 15,446 crore in four Adani firms, namely Adani Enterprises, Adani Green, Adani Ports and Adani Transmission, before resuming fall today.
Shah Dhandharia's decision to step down as Adani Total auditor was announced after its Board of Directors approved the financial results for the fourth quarter (January-March) as well as the full year ended March 31.
"We have completed our Statutory Audit for the year ended March 31, 2023, and issued our reports on May 2, 2023. We have carefully evaluated and due to increased professional preoccupation with another assignment, we regrettably propose our resignation. Our resignation does not result from an inability to obtain sufficient appropriate audit evidence. There are no other circumstances connected with our resignation that we consider should be brought to the notice of the Board. In view of the above and as discussed and agreed with the management, we express our inability to continue as the Statutory Auditors for the company," Shah Dhandharia stated in its resignation letter.
Meanwhile, Indian equity benchmarks traded lower in today's session, halting their eight-day winning run. The domestic indices were dragged by banks, financials, technology and metal stocks.