NEW DELHI: S&P Dow Jones Indices released an information regarding the on the buzz Adani Group. Adani Enterprises will be extracted out from the Dow Jones Sustainability Indices. This particular decision has been made by the company based on the allegations put against Adani Group under stock manipulation and fraudulent activities.
This has been announced by the S&P Dow Jones Indices. This particular step of removing the Adani Enterprises from the index will essentially have the effect of making its shares less appealing to environment-conscious investors.
The announcement arrived after the market rout of Adani stocks got more intense on 3rd February, Friday. Adani's stock lowered down 15 per cent on the announcement.
The Adani Enterprises, Adani Ports and SEZ along with Abuja Cements are all under the scrutiny of additional surveillance measures (ASM), in effect from 2nd of February. The companies under Adani Group has come down to market capitalisation of $102 billion, which is half the billion prior to Hindenburg's allegations against the Group.
The billionaire lost approximately 2 lakh crore in the market. Unfortunately, Gautam Adani failed to stick to his ranking at the top five of Global rich list. He came down to the seventh position in the rich list on Friday. But, Gautam Adani is still the richest man in India. India's and Asia's billionaire, Gautam Adani has now come down to a spot below Microsoft owner, Bill Gates.
Bill Gates wealth was estimated at $104.1 billion on the list. Adani plunged to the third spot for a long period of time, however, was replaced by Jeff Bezos, the founder of Amazon. RIL Chairman, Mukesh Ambani secured the 11th position in the rich list with $83.6 billion. Gautam Adani's downfall arrived on Friday, after the clash between Adani Group and US-based activist investor firm, Hindenburg Research took a more intense form on Thursday.
Hindenburg Research on 24th of January claimed that, Gautam Adani is involved in stock market manipulation. Apart from that, several allegations were made against Adani group and the role of his close family members.
The Adani group claims that the allegations are null and it is trying to defame and sabotage the FPO of Adani Enterprise. However, Adani denied all allegations and declared legal action against the Hindenburg research after the stock market witnessed a massive loss.
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