Adani Group Companies Experience Decline in Shares Following Auditor Resignation
Shares of all 10 listed Adani Group companies saw a decline on Monday after Deloitte Haskins & Sells resigned as the auditor of Adani Ports and Special Economic Zone. This resulted in a loss of approximately ₹25,000 crore in market capitalization for the group’s companies during Monday’s trading.
Shares of Adani Enterprises and Adani Ports & SEZ Experience Decline
Adani Enterprises, the flagship company of the group, witnessed a drop of 5.4% in early trading on Monday, before closing 3.3% lower at ₹2,456. Additionally, Adani Ports & SEZ shares fell nearly 2% and closed at ₹787.
Deloitte Resigns as Adani Ports’ Auditor
Deloitte, which had been serving as Adani Ports’ auditor for the past six years, resigned on Saturday due to concerns regarding certain transactions the company had entered into, including one with an EPC contractor named in the Hindenburg report. The report had triggered the selloff in the Adani Group’s shares since January 25 of this year.
In response to the resignation, Adani Ports announced in a regulatory filing that it had accepted Deloitte’s resignation and appointed MSKA & Associates Chartered Accountants as the new auditor for the company.
Other Adani Group Companies Also Experience Share Decline
Other companies within the Adani Group also saw a decrease in their shares. Ambuja Cement shares fell by 3.4% to ₹441, while Adani Transmission experienced a decline of 2.8%.
Sebi Seeks Extension to Complete Probe into Hindenburg Allegations
The Securities and Exchange Board of India (Sebi) has requested a 15-day extension from the Supreme Court in order to complete its investigation into the allegations made by Hindenburg against the Adani Group. The court had initially granted Sebi time until August 14 to complete the probe and submit a report.
Summary:
- Deloitte Haskins & Sells resigned as the auditor of Adani Ports and Special Economic Zone, resulting in a decline in shares for all 10 listed Adani Group companies.
- Adani Enterprises and Adani Ports & SEZ witnessed drops in their shares, closing at ₹2,456 and ₹787 respectively.
- Deloitte resigned due to concerns over certain transactions, including one with an EPC contractor named in the Hindenburg report.
- Ambuja Cement and Adani Transmission also experienced declines in their share prices.
- The Securities and Exchange Board of India (Sebi) sought an extension to complete its investigation into the allegations made by Hindenburg against the Adani Group.
You are reading Mid-East Award Winning news outlet GulfHindi