The Adani Group, a major Indian conglomerate, faced a sell-off in its shares for the second time in two weeks after comments made by billionaire investor George Soros.
The Adani Group, which operates in diverse sectors such as ports, energy, and infrastructure, has been in the spotlight due to its close ties with Indian Prime Minister Narendra Modi and allegations of environmental violations.
George Soros recently said that the Indian government’s treatment of the Adani Group is reminiscent of China’s crackdown on its own tech companies.
He argued that the Indian government’s close relationship with Adani has allowed the conglomerate to gain a dominant position in several industries, which could stifle competition and harm smaller businesses.
|Company||Current market price||Change in market cap|
|Adani Enterprises||₹1,716.2||-₹12,504 crore|
|Adani Total Gas||₹971.5||-₹6,244 crore|
|Adani Transmission||₹920.15||-₹5,999 crore|
|Adani Ports & SEZ||₹573.4||-₹879 crore|
|Ambuja Cements||₹350.3||₹470 crore|
|Adani Green||₹627||₹1,874 crore|
|Adani Wilmar||₹433.1||₹2,148 crore|
|Adani Power||₹155.15||₹2,984 crore|
These comments led to a sharp drop in Adani Group’s share prices, with some companies in the group losing up to 25% of their value.
The sell-off follows a similar episode two weeks ago, which was also prompted by concerns over Adani’s environmental impact and allegations of corruption.
The Adani Group has denied any wrongdoing and argued that it has a strong record of environmental compliance.
The Adani Group is one of the largest conglomerates in India, with a market capitalization of around $120 billion. Its founder, Gautam Adani, is one of the wealthiest people in India, and the company has close ties with the ruling Bharatiya Janata Party (BJP).
The recent sell-off in Adani’s shares could have broader implications for the Indian stock market, which has been performing well despite the COVID-19 pandemic.