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S&P Dow Jones removed Adani from its index, further compounding the Indian conglomerate’s woes.
Dow Jones has announced plans to remove Indian multinational conglomerate Adani Enterprises from its sustainability index. According to Dow Jones, Adani’s dismissal will take effect Tuesday, February 7.
“Adani Enterprises will be removed from the Dow Jones Sustainability Index following Media & Stakeholder Analysis triggered by allegations of stock manipulation and accounting fraud,” the announcement read.
Although Adani has yet to issue a retort on S&P Dow Jones developments, 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 is still operating without interruption on the Dow Jones Sustainability Emerging Markets Index. However, the Ahmedabad-headquartered conglomerate recently slipped to the brink of increasing share losses amid criticism of US short-sellers.
Dow Jones Sustainability Emerging Markets Indices assesses companies across 61 industries and rates them according to criteria. This criterion requires company responses to a questionnaire known as the S&P Global Enterprise Sustainability Assessment.
S&P Global’s website states that the index acts as a benchmark for investors looking to “integrate sustainability considerations into their portfolio.” Additionally, the index provides “an effective engagement platform for investors who wish to encourage companies to improve their corporate sustainability practices.”
Founder & Chairman of Adani Group Suffers Massive Denial in Personal Values
In late January, the founder and chairman of the Adani Group, Gautam Adani, suffered a shocking drop in net worth as his company crashed. However, Adani tried to downplay her misfortune even though she suffered a sharp defeat for the third time in a row.
Adani lost nearly $50 billion just over a week after a US company accused it of stock manipulation and accounting fraud. The Hindenburg report takes aim at the operational practices of Indian companies, saying:
“Today we are disclosing the findings of our 2 year investigation, presenting evidence that Indian conglomerate Adani Group worth INR 17.8 trillion (US$218 billion) has been involved in brazen stock manipulation and accounting fraud schemes for decades.”
In addition, Hindenburg also had this to say about Adani Enterprises shares:
“After extensive research, we took a short position in Adani Group Companies through US-traded bonds and non-India-traded derivative instruments.”
Adani’s initial damning reports were enough to see its billionaire founder fall out of the world’s top five richest. At that time, Gautam Adani was ranked seventh on the Bloomberg Billionaires Index. However, with the recent collapse of his company’s shares, the Indian tycoon is no longer among the world’s top 20 billionaires. The Bloomberg Billionaires Index ranks Gautam Adani with a current net worth of $61.3 billion annually. Meanwhile, the Forbes Real-Time Billionaires Index states that the chairman of the Adani Group is currently worth $57.3 billion.
Adani has since objected to Hindenburg’s allegations, describing the report as a “dangerous combination of selective misinformation.” In addition, the conglomerate claims to comply with all laws and promises to protect its investors.
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Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He loves to unravel crypto stories to the basics so that anyone everywhere can understand them without too much background knowledge. When he’s not deep into crypto stories, Tolu enjoys music, loves singing, and is an avid film lover.
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