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Adani Group Stocks Fall; Adani Ent Tanks Over 5%

New Delhi: Shares of Adani group stocks fell on Monday after Deloitte resigned as auditor of the Adani group’s port company. Deloitte has resigned as auditor of the Adani group’s port company, with the firm run by billionaire Gautam Adani saying the auditor wanted a wider remit over other firms in the conglomerate following the report of a US short seller.

Shares of Adani Enterprises tanked 5.41 percent, Adani Transmission fell by 4.77 percent, Adani Power declined by 4.23 percent, Ambuja Cements dived 4 percent and Adani Ports skidded 3.70 percent on the BSE. (Also Read: Gautam Adani’s Superb Luxury Car Collection Makes Heads Turn)

The stock of Adani Green Energy declined by 3.22 percent, Adani Wilmar (3.14 percent), Adani Total Gas (3 percent), NDTV (3 percent) and ACC (2.23 percent). In the equity market, the 30-share BSE Sensex quoted 335.61 points down at 64,987.04.

The resignation came weeks after Deloitte raised concern over certain transactions flagged in the report of Hindenburg Research. In a statement, Adani Ports & Special Economic Zone (APSEZ) confirmed the resignation and appointment of M S K A & Associates as the new auditor.

Deloitte has been the auditor of APSEZ since 2017. In July 2022, it was given another five-year term.

“In Deloitte’s recent meeting with APSEZ management and its Audit Committee, Deloitte indicated a lack of a wider audit role as auditors of other listed Adani portfolio companies. The audit committee was of the view that the grounds advanced by Deloitte for resignation as statutory auditor were not convincing or sufficient to warrant such a move,” it said.

APSEZ conveyed that it was not within the remit of the firm and its board to recommend group-wide appointments as other listed Adani portfolio companies are completely independent, with separate boards, executive teams, and minority shareholders.

“Following this, Deloitte was not willing to continue as APSEZ’s statutory auditor and, therefore, it was agreed to amicably end the client-auditor contractual relationship between APSEZ and Deloitte,” it said.

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