Adani Enterprises Q3 results tomorrow. 5 challenges faced by firm amid Hindenburg rout

Adani Enterprises is scheduled to report its third-quarter earnings for the quarter ended December 2022 of the current fiscal (Q3 FY23) on Tuesday, February 14, 2023. The flagship firm of the Adani Group has been in spotlight since the January 24 report by the US-based short-seller firm Hindenburg that accused the conglomerate of stock manipulation and improper use of offshore tax havens, which the group has repeatedly denied, and also calling off its ₹20,000 crore follow-on public offer (FPO).

5 challenges faced by Adani Enterprises since Hindenburg report

  • The company had abruptly pulled off a record ₹20,000 crore share sale, a day after the FPO was fully subscribed, following a meltdown in its stock and bond prices triggered by short seller Hindenburg Research’s allegations that the conglomerate engaged in stock manipulation and accounting fraud over decades
  • Global index provider MSCI last week said that it has reduced the free floats of Adani Enterprises, Adani Total Gas, Adani Transmission and ACC, though, the remaining companies’ free floats will remain the same
  • The National Stock Exchange (NSE) has removed two Adani group stocks — Adani Ports & Special Economic Zone and Ambuja Cements — from the short term Additional Surveillance Measure (ASM) framework from 13th February 2023, after putting three Adani Group stocks under the ASM framework on February 3. However, Adani Enterprises shares continue to remain under the framework
  • Adani Enterprises shares have declined more than 52% in a month amid the rout in the Group stock
  • Gautam Adani’s conglomerate has halved its revenue growth target and plans to hold off fresh capital expenditure, a Bloomberg report suggested on Monday. The group will now aim for revenue growth of 15% to 20% for at least the next financial year, down from the 40% expansion originally targeted, as per the report.

    Another report by Reuters suggested that market regulator Securities and Exchange Board of India (SEBI) will update the finance ministry this week on its investigation into the Adani Group’s withdrawn $2.5 billion follow-on public issue. The board of the Securities and Exchange Board of India (SEBI) is scheduled to meet Finance Minister Nirmala Sitharaman on Feb. 15.

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