Why Adani Enterprises Shares Crashed ?

Didi Investor Lost Money in Adani Enterprises

Adani Enterprises crashed 83 per cent to an intraday low of Rs 106.35 on Wednesday as its share price was adjusted for demerger of its port, power and transmission businesses. June 4 is the record date for demerger.
Under a corporate restructuring, Adani Enterprises demerged its ports business into Adani Ports following which shareholders of Adani Enterprises will get 14.123 shares of Adani Port for every 10 share held in Adani Enterprises.
Likewise, Adani Enterprises demerged its power and transmission business; power business will be merged into Adani Power and the transmission business will be listed as a separate entity. Shareholders of Adani Enterprises will get 18.596 shares of Adani Power for every 10 shares held in Adani Enterprises.
Adani Enterprises will merge mining business- Adani Mining Private Limited (AMPL)- with itself, but no equity shares are to be issued to Adani Enterprises shareholders as AMPL is a fully owned subsidiary of Adani Enterprises .

Adani Enterprises shares, as of Wednesday, do not reflect the value of its investment in Adani Port and Adani Power. The restructured Adani Enterprises shares currently reflect the value of its coal, logistics, gas distribution and agro business only.

Let me explain you How Investor does not lost money

Mr Raj is having  10,000 shares of Adani Enterprises. Price on 2 JUne was Rs. 637 so he has invested  Rs. 63,70,000.

As per the above restructuring Mr Raj will get the credit of shares of below companies and will also retain 10000 shares of Adani Enterprises.

  • 14,123 Adani Ports
  • 18,596 Adani Power
  • 10,000 Adani transmission

So lets Calculate the price of the below shares as per yesterday closing

10,000 Adani Enterprises at Rs. 120 = Rs. 12,00,000
14,123 Adani Ports at 293 = Rs. 41,38,039
18,596 Adani Power at 34 = Rs. 6,32,264
10,000 Adani transmission at a price we don’t know yet.

The three listed firm ownership adds up to 59,70,303. If you assume Adani transmission lists at Rs. 40 or so, you will be “even” on the investment.

(Remember that stocks have fallen a lot today. If Adani were to have fallen 4%, then yesterday’s investment should have fallen to Rs. 61,20,000 or so anyhow – so the difference is even smaller).

The point here is: even if the share has fallen 80%, the amount of money you have lost will not be anywhere close – it will probably have dropped 3-4% along with the market today, that’s all.

But traders who bought in morning seeing the low price as compared to 01 June and who did not have the proper information   would have lost money and SEBI should intervene here as Adani should have been traded as thats the true value after demerger 120-130 odd levels and should not have opened at 480 odd levels.

We will use our site as medium to reach out to SEBI, Spread the words to your friends so that our voice is heard.

27 thoughts on “Why Adani Enterprises Shares Crashed ?”

  1. Sir,main Rs 30,000 margin pe june 3 ku 1000 adani enterprise share buy kiya tha,kuch der baad dekta hun tho,heavy loss 2,90000 sow kar tha,main jab mera icicidirect broker ku cl kiya mera broker help karne direct mana kar diya…mera broker avi muje 2,90.000 demand kar ra hey…mera pass bilkul money nehi..may karun kya….

  2. All those who bought AEL on 3rd June 2015 will not get shares of demerged companies. It will go to those who sold on 3rd June 2015.

  3. You have correctly written above “SEBI should intervene here”. Short sellers have made a fortune. SEBI shd also find out who they are. Could be a scam tucked away deep inside. The public deserves to know.

  4. Is the record date of 04 jun correct ? In that case all those who bought on 3 rd should get the benefit? record date ? anyone who sold out at say 500+ on 3rd would get the demerged shares as eplained above by you please if you could clarify

  5. sir,my broker is a sub broker and main broker itself is very small,please can you tell me,if i brought on 27 and cleared on 28,then m i suppose to hold the share in my dmat on 29th, if yes then i will check with my broker, or else no point arguing and talking to him

  6. We need to hold shares on Record date if not hold in DMAT you will not get any shares.

    Ask your broker he will help u out.

  7. The board of directors of Arvind has fixed May 29, 2015 as the record date for determining the entitlement of shareholders of Arvind, the transferor company, to receive the equity shares of Arvind Infrastructure Limited…sir if this is the case then as how is it possible that ppl who brought on 27th and cleared on 28 wll get the new shares as per your earlier upda

  8. but sir,so far i dint get any shares in arvind, i bought 500 shares on 27th at 235 and cleared next day @232,tenttive date and time for the same

  9. sir,what abt people who brought adani on 2nd and cleared on 3rd,will they also get the shares,similarly what abt ppl who brought arvind on 27th and cleard on 28 last expirey,please help me in knowing this,this is very useful to all for learning purpose

  10. This is a unethical pratice by sebi…n this also tells us about the whole scam..which is how the nexus between big business and the agencies which are so called to protect the interest of public..runs…i feel bad for the ppl who lost their hard earned money..

  11. Fo trading Is for hedging our long term portfolios… This infomation is for people who have invested real money in it… Not for people who trade with brokers money….and Still adani is giving shares of its other companies… What about satyam… And talking of yesterday wat about unitech?
    Stock markets come along with its unique types of risk everytime…
    Be more responsible for your losses… No blame games….
    Bramesh is very kind person to share this type knowledge for free…
    If u dont like please dont visit the page…

  12. what will happen to FNO longs @ 637, FNO 640 puts @ 0.10 spiked to 500— wt will happen to the seller who wrote PUT.

  13. SEBI should not have allowed them to close the F&O contracts on 2 JUN. This is not a good process..

  14. Stop justifying unethical acts bramesh. Isnt it clear to you that investors have lost money buying adani enterprises you fool.

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