Adani group stocks have lost nearly $10 billion in market value this week

Flagship Adani Enterprises Ltd., incubator for many of the group’s investments, is set for a weekly loss of almost 4 percent, the biggest since March.

The company and the transmission unit last week flagged plans to raise $2.6 billion via a qualified institutional placement or other modes, triggering concerns of equity dilution. “If the shares are priced too low in a QIP issue, it could be seen as a sign of weakness or desperation,” Arpit Shah, a fund manager at Care Portfolio Managers, wrote via email.

Also read: Most Adani Group shares decline after two companies announce Rs 21,000 crore fundraising plan

The Adani group has been trying to regain investor confidence after fraud allegations by Hindenburg Research in late January spurred a rout that at one point wiped out over $150 billion from the market value of its listed stocks.

The Adani stocks recovered after GQG Partners in early March bought stakes in four of the group’s entities, offering a vote of confidence. The market-cap loss currently stands at about $128 billion. The total market-cap of all Adani group stocks today is at nearly $105 bn.

Adani has denied Hindenburg’s allegations, while taking steps in the aftermath of the report to assuage investor concerns over debt and corporate governance. In March, the group prepaid share-backed financing of $901.16 million, as part of its promoters' commitment to cut overall leverage backed by shares of the Group's listed companies.

In the hearing on May 17, SEBI granted extension of time till August 14. The Supreme court said  "We initially allowed you 2 months, have now granted 3 more months, have effectively given 5 months now. SEBI can share status of probe in August, if there is a genuine issue we will consider,"