Adani Enterprises shares to be removed from Dow Jones Sustainability indices

According to a Dow Jones Index release, Adani Enterprises will be excluded from the Dow Jones Sustainability Indices following a Media & Stakeholder Analysis prompted by claims of stock manipulation and accounting fraud.

Adani Enterprises shares have got another jolt from the US markets following the inclusion of three Adani group equities — Adani Enterprises, Adani Ports and Special Economic Zone, and Ambuja Cements — in the ASM (additional surveillance measure) list for the short term. Adani Enterprises shares are currently set to be delisted from the Dow Jones Sustainability Indices, effective before the market opens on Tuesday, February 7th, 2023. The information was revealed in a US market index statement.

Announcing about removal of Adani Enterprises shares from the S&P Dow Jones Sustainability Indices, the Index announcement said, Adani Enterprises (XBOM: 512599) will be removed from the Dow Jones Sustainability Indices following a Media & Stakeholder Analysis triggered by allegations of stock manipulation and accounting fraud.”

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“S&P Dow Jones Indices will make the following changes to the Dow Jones Sustainability Indices, effective prior to the open on Tuesday, February 7, 2023,” Index announcement added.

The S&P Dow Jones Sustainability Index’s decision follows a drop in the shares of billionaire Gautam Adani’s group firms following a damning analysis by US-based short-seller Hindenburg Research.

Adani group equities have been under intense selling pressure since US-based short seller Hindenburg Research expressed worry over Adani group firms’ launch posture. Adani Enterprises’ share price on the NSE has decreased from 3,442 to 1,565 per share in the previous six sessions, representing a 55% drop.

Following the drop in Adani Enterprises shares, Chairman Gautam Adani announced the withdrawal of Adani Enterprises Ltd’s follow-on public offer, which was planned to produce 20,000 crore in net proceeds for the business.

However, the situation deteriorated further as Adani group bonds began to plummet in global markets, raising concerns among Adani group company shareholders.

On Thursday, NSE announced to put three Adani group stocks in AMS list citing, “There shall be Additional Surveillance Measures (ASM) on securities with surveillance concerns based on objective parameters viz. Price / Volume variation, Volatility etc.”