Adani Enterprises, a multinational conglomerate based in India, has recently seen its shares removed from major US indices, causing a ripple in the stock market. The removal of Adani’s shares has raised concerns about the company’s future investments and growth prospects in the United States.
Adani Enterprises is recognized for its diversified business interests, including ports and logistics, agribusiness, energy, defense and aerospace, and real estate. However, the company has faced criticism in recent years over its environmental and social impact, leading some investment firms to divest from Adani’s shares.
The removal of Adani’s shares from major US indices is a significant development, as it reduces the company’s exposure to international investors. The impact of this removal on Adani’s stock performance remains to be seen, but it is likely to affect investor confidence in the company.
In light of this development, Adani Enterprises is expected to review its corporate strategy and seek alternative investment opportunities to maintain its growth prospects. It is also likely to face increased scrutiny from investors, who will be closely monitoring the company’s performance and impact on the environment and society.
On January 24, the New York-based short seller Hindenburg Research accused the Adani group of utilising offshore shell companies for money laundering and fraud. The Adani Group refuted the claims, claiming that they were timed to coincide with the expiration of the Rs 20,000 crore FPO. In reality, Gautam Adani, the group’s chairman, said on February 2 in a video address that he was cancelling the fully subscribed follow-on public offering and refunding investors’ money.
However, the Hindenburg report caused investor fear, and the Adani group has lost $108 billion in market value since the study was released. To mitigate the effect from the Adani group’s demise, the National Stock Exchange (NSE) declared that three Adani group equities — Adani Enterprises, Adani Ports and Special Economic Zone, and Ambuja Cements — will be added to the ASM (Additional Surveillance Measure) list.