Adani Enterprises, two other Adani firms under ASM framework; here’s how group stocks reacted

National Stock Exchange (NSE) on Wednesday announced that Adani Enterprises and two other Adani group entities - Adani Power and Adani Wilmar - will be placed under short-term Additional Surveillance Measure (ASM) framework from March 9. This would mean that intraday trading will require a 100% upfront margin, while dealing in these three Adani group shares. During stage I of ASM, traders dealing in the stocks are required to deposit a 100% margin, and these counters are subject to a 5% circuit limit.

It is noteworthy that the domestic bourses NSE and BSE had removed Adani group flagship company Adani Enterprises from the ASM Stage I framework on March 8, 2023, which was put in place since February 3. On February 3, both the BSE and NSE put Adani Enterprises, Adani Ports and Special Economic Zone, and Ambuja Cements in the surveillance framework to restrict excessive volatility in the stocks triggered by a controversial report by the U.S.-based short seller Hindenburg Research. While Ambuja Cements and Adani Ports were removed from the framework on February 13, Adani Enterprises remained under surveillance till March 8.

Market regulators Securities and Exchange Board of India (SEBI) and exchanges, impose surveillance measures to enhance market integrity and safeguard the interest of investors. The regulators put in extra surveillance on securities to keep a check on price variation and volatility along with the existing pre-emptive Surveillance measure like Graded Surveillance Measure (GSM), price band, periodic call auction and transfer of securities to trade-to-trade settlement from time-to-time.

Meanwhile, seven out of 10 listed Adani group companies traded in green on Thursday, in sync with the broader market, with six stocks hitting their upper circuit. While Adani Green Energy, Adani Power, Adani Transmission, Adani Total Gas, NDTV, and Adani Wilmar hit their respective 5% upper circuit limits, Ambuja Cements were trading higher with marginal gains. Bucking the trend, Adani Enterprises declined as much as 3%, while ACC and Adani Ports and SEZ were down over 1% in early trade.

Shares of Adani group companies extended rally for the seventh straight session on Thursday amid easing concerns about the conglomerate’s debt obligations after Gautam Adani-led entity raised ₹15,446 crore by selling minority stakes in four of its listed firms to U.S.-based GQG Partners. GQG acquired 3.4% stake in Adani Enterprises for about ₹5,460 crore, 4.1% in Adani Ports for ₹5,282 crore, 2.5% in Adani Transmission for ₹1,898 crore, and a 3.5% shares in Adani Green Energy for ₹2,806 crore.

In the last seven trading days, the combined market capitalisation of all 10 Adani stocks jumped over ₹2 lakh crore to ₹9.3 lakh crore. The stocks regained buying momentum after losing nearly ₹12 lakh crore in market value in more than a month after the U.S.-based short seller Hindenburg Research released a report on January 24, making some serious allegations against the company. However, the Adani group had refuted allegations in a detailed report.