Adani Total Gas shares hit lower circuit again, down 56% in 8 sessions

Shares of Adani Total Gas and a majority of the group's other stocks continued to plunge in Thursday's trade after the Gautam Adani-led conglomerate called off a Rs 20,000 crore follow-on public offer (FPO). Adani Enterprises, the group's flagship firm, shelved the share sale, despite the offer being fully subscribed.

Adani Total slumped 10 per cent to hit its lower circuit of Rs 1,711.50 over a previous close of Rs 1,901.65. Around 5,051 shares changed hands today on BSE, which was lower than the two-week average volume of 53,000 shares. Turnover on the counter stood at Rs 86.44 lakh, commanding a market capitalisation (m-cap) of Rs 1,88,232.50 crore. There were 1,30,971 sell orders on BSE today.

At today's low price of Rs 1,711.50, the counter has lost 56.32 per cent in eight sessions. 

The stock was last seen trading lower than 5-day, 20-, 50-, 100- and 200-day moving averages. The counter's 14-day relative strength index (RSI) came at 15.15. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 431.63.

Adani Total has an average target price of Rs 2,625, Trendlyne data showed, suggesting a potential upside of 53.72 per cent. The scrip has a one-year beta of 1.4, indicating high volatility.

Adani Total Gas is a joint venture between France's energy major Total and Adani Group.

Meanwhile, the Reserve Bank has asked Indian banks for details of their exposure to Adani Group companies, news agency Reuters reported quoting sources. The news agency also reported that market regulator SEBI is examining a recent crash in Adani Group shares and looking into any possible irregularities in a share sale by its flagship company.

Citigroup's C.N wealth unit has stopped extending margin loans to its clients against securities of Adani Group, news agency Reuters reported quoting a source. This comes when the group is reeling from a US-based short seller attack.

The stocks began tumbling after a report by Hindenburg Research alleged that the Indian conglomerate had engaged in stock manipulation and accounting fraud over the last few decades. Adani Group, however, refuted the allegations as baseless.

In addition, all of the 10 listed Adani Group stocks fell sharply yesterday after a report claimed that Swiss lender Credit Suisse had stopped accepting bonds of Adani companies as collateral for margin loans to its private banking clients.

Also read: Adani Enterprises shares hit 10% lower circuit on FPO withdrawal; Adani Total, Adani Green, Adani Power bleed. Here's why

Also read: Adani Group debt: RBI asks banks to furnish exposure details; here's what Kotak Securities says