A global stock market selloff and a report from Bloomberg Television's "Inside Adani" suggested that Gautam Adani, the chairman of the Adani group, plans to step down at the age of 70 and hand control over to his scions in the early 2030s. As a result, shares of Adani group companies, including Adani Enterprises Ltd., Adani Green Energy Ltd., Adani Energy Solutions Ltd., Adani Power, and Adani Total Gas Ltd., fell as much as 6% during Monday's trading.
The group's flagship company, Adani Enterprises, fell 3.78 percent to close at Rs 3,041.15 on the BSE. Adani Power fell to a low of Rs 685.20, a 5.67 percent loss. At Rs 1,180.10, Adani Energy Solutions fell 6.41 percent. At Rs1,510.15, Adani Ports had a 4.89 percent decline.
Adani Total Gas fell 4.43 percent to Rs 868.20, Adani Green Energy fell 4.77 percent to Rs 1,790.70, ACC fell 2.2% to Rs 2,381.80, and Ambuja Cements down 2.01% to Rs 637.75. NDTV's stock dropped 2.45% to Rs 213. The only Adani group stock to trade higher was Adani Wilmar. At Rs 388.25, it was up 1.37%.
In his 16th-floor office at the group's Ahmedabad headquarters, Gautam, 62, said, "Succession is very, very important for the business sustainability." According to Bloomberg, he stated, "I left the decision to the second generation as the transition must be organic, gradual, and very systematic."
Gautam Adani has never before discussed his intentions for succession. According to a Bloomberg report, the transfer will have to deal with a number of issues, including unresolved issues from the Hindenburg era, concerns about Gautam's key-man risk, the complex web of trusts and entities holding the family's business shares, and the complications raised by the succession plan itself.
Even in times of crisis or critical strategic decision, the Adani children stated in separate interviews that collaborative decision-making will continue when the group founder does stand aside.
