Shares of Adani Group‘s energy company Adani Power slumped to hit lower circuit for the third straight session on Tuesday.
What Happened: The company has been reeling at the bourses since the Hindenburg report came out in January. Since then the shares of the company have slumped by around 36%. The company had a brief recovery run that started in late February and continued till mid-March. In that period the company’s shares hit upper circuit for nine straight sessions.
However, the stock is currently on a four-session losing streak. Seeing the extreme volatility the stock was again put under the Additional Surveillance Measure (ASM) framework on March 22. ASM a SEBI and the exchanges’ initiative to safeguard the interest of investors and alert them about extreme volatility in a stock.
The slump comes even as the company received relief from the Supreme Court in the alleged overvaluation in the import of capital goods case. The Court on Monday dismissed an appeal filed by the Directorate of Revenue Intelligence against a 2022 order of the Customs, Excise & Service Tax Appellate Tribunal that quashed cases of over-invoicing against three Adani group companies.
Price Action: Adani Power shares slumped 5% to hit lower circuit at ₹173.85 in the early hours of trading on Monday.
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