Adani Group companies suffered a decline in their stock prices on Monday after the revenue target was revised and four group firms were downgraded by Moody's.
Adani Enterprises Ltd fell 7 percent, Adani Ports & Special Economic Zone 5.5 percent, Adani Total Gas 5 percent, Adani Green Energy 5 percent, Adani Transmission 5 percent, Adani Wilmar 5 percent, ACC Ltd 4 percent, Ambuja Cement 6 percent, Adani Power 5 percent, and NDTV 5 percent.
According to a Bloomberg report, the Adani Group has revised its revenue growth target to 15 percent to 20 percent for the next fiscal year, which is a significant drop from the earlier target of 40 percent. The report also stated that the group will scale back its capital expenditure plans to focus on financial stability over aggressive expansion.
Moody's Investors Service downgraded the outlook for Adani Green Energy and three other firms backed by Indian businessman Gautam Adani on Friday, citing the decline in the conglomerate's stock market value.
MSCI recently announced that it would reduce the amount of freely tradable shares in its calculation. MSCI has announced its plans to alter the free float of Adani Enterprises Ltd, Adani Transmission Ltd, Adani Total Gas Ltd, and ACC Ltd. These changes will be put into effect on February 28.
According to a Reuters report, Securities Exchange Board of India (Sebi) will provide an update on its investigations into the Adani Group's withdrawn follow-on public issue this week. Sebi is scheduled to meet Finance Minister Nirmala Sitharaman on February 15. Sebi's board will brief the finance minister on surveillance measures taken by the regulator during the recent rout in Adani Group stocks.
Since January 24, the stocks of Adani Group companies have experienced a dramatic decline, following allegations made by Hindenburg Research, a US-based research firm. The accusations of "stock manipulation and accounting fraud" against the Adani Group have resulted in a sharp drop in the conglomerate's market capitalisation, losing over $120 billion in value.
The allegations have created significant market uncertainty and have led to a decline in the stocks' performance.
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