The S&P Dow Jones is delisting Adani from its index, further adding to the Indian conglomerate’s growing woes.
Dow Jones has announced plans to remove embattled Indian multinational conglomerate Adani Enterprises from its sustainability index. According to the Dow Jones, Adani’s dismissal will take effect on Tuesday, February 7.
“Adani Enterprises will be removed from the Dow Jones Sustainability Indices following media and stakeholder analysis sparked by allegations of stock manipulation and accounting fraud,” the announcement read.
Although Adani has yet to issue a reply to the development of the S&P Dow Jones, the company’s shares traded 30% lower in Mumbai on Friday.
Adani Enterprises was added to the Dow Jones Sustainability Emerging Markets Index last December
As of December 19, 2022, Adani continued to trade without interruption in the Dow Jones Sustainability Emerging Markets Index. However, the Ahmedabad-based conglomerate recently fell into a cesspool of mounting stock losses amid criticism from US short sellers.
The Dow Jones Sustainability Emerging Markets Indices rate companies in 61 industries and rate them based on criteria. This criterion involves company responses to questionnaires known as the S&P Global Corporate Sustainability Assessment.
He S&P Global website claims that the indices act as benchmarks for investors looking to “integrate sustainability considerations into their portfolios.” Additionally, these indices serve to be an “effective engagement platform for investors who want to encourage companies to improve their corporate sustainability practices.”
The founder and president of the Adani Group suffers a major dent in personal value
In late January, the founder and chairman of the Adani Group, Gautam Adani, suffered a staggering drop in his net worth as his company faltered. However, Adani tried to downplay the great misfortune of him even though he suffered heavy losses for the third time in a row.
Adani lost nearly $50 billion just over a week after an American company accused his company of stock manipulation and accounting fraud. A Hindenburg report took aim at the Indian company’s operating practices, saying:
“Today we are unveiling the findings of our 2-year investigation, presenting evidence that INR 17.8 trillion (US$218 billion) Indian conglomerate Adani Group has engaged in a brazen scheme of accounting fraud and stock manipulation in the over decades.”
Furthermore, Hindenburg also said about the actions of Adani Enterprises:
“After extensive research, we have taken a short position in Adani Group Companies across US-traded bonds and non-India-traded derivatives.”
Adani’s damning initial report was enough to see its billionaire founder fall out of the world’s five richest. At the time, Gautam Adani was ranked seventh in the Bloomberg Billionaires Index. However, with the recent plunge in his company’s shares, the Indian tycoon is no longer one of the world’s top 20 billionaires. The Bloomberg Billionaires Index ranks Gautam Adani with a present net worth of $61.3 billion a year. Meanwhile, the Forbes Real-Time Billionaires Index states that the Adani Group chairman is currently worth $57.3 billion.
Adani has since opposed Hindenburg’s allegations, describing the report as a “malicious mix of targeted misinformation.” In addition, the conglomerate claims that it has always complied with all laws and is committed to protecting its investors.
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Tolu is a Lagos-based blockchain and cryptocurrency enthusiast. He likes to demystify the crypto stories down to the basics so that anyone anywhere can understand them without too much prior knowledge. When he’s not up to his neck in crypto-stories, Tolu likes music, loves to sing, and is an avid movie buff.
