Since last week, the Adani group lost around Rs 7.44 lakh crore in market value.
Shares of most Adani Group companies slipped to their respective lower circuits on February 2 as the selloff for Adani stocks intensified.
Dark clouds continued to surround Adani Group stocks following a report from Bloomberg citing sources that Citigroup Inc.’s wealth arm has also stopped accepting securities of Gautam Adani’s group of firms as collateral for margin loans.
The move by CitiGroup Inc comes just a day after a similar decision was taken by Swiss lender Credit Suisse’s private banking arm.
Adding to that, the surprise move to withdraw the Rs 20,000 crore follow-on public offer of Adani Group’s flagship Adani Enterprises weighed on the stock as it slipped to a low of Rs 1,815.05 on February 2. The decision to withdraw the public offer just a day after it was fully subscribed came in the wake of the recent fall in the stock.
“…Today the market has been unprecedented, and our stock price has fluctuated over the course of the day. Given these extraordinary circumstances, the Company’s board felt that going ahead with the issue will not be morally correct. The interest of the investors is paramount and hence to insulate them from any potential financial losses, the Board has decided not to go ahead with the FPO,” Gautam Adani said in a note on February 1.