Adani group stocks fall continued drastically, after research firm Hindenburg’s damaging report
After the damaging report and allegations by US-based research company Hindenburg, Adani group stocks took a beating for a second straight session on Friday. The stocks fell to 20 percent and lost over ₹ 4.17 lakh crore from the combined market valuation of listed firms solely because of the allegations and claims made by Hindenburg. Gautam Adani, a billionaire saw a drastic drop of more than $20bn (£16bn) wiped off his wealth on Friday after investors exited his companies for a second day prompted by fraud claims made by a US investment firm.
Shares of Adani Total Gas plummeted 20 percent, Adani Transmission tumbled 19.99 percent, Adani Green Energy plunged 19.99 percent and Adani Enterprises tanked 18.52 percent on the BSE.
Also, Adani Ports and Special Economic Zone fell 16.03 percent, Adani Wilmar dipped 5 percent and Adani Power declined 5 percent.
Meanwhile, the Adani group has denied the claims, the whole report being malicious. Gautam Adani is likely to make charges and take legal action on the alleged fraud claims by the investment firm.
“The maliciously mischievous, unresearched report published by Hindenburg Research on January 24, 2023, has adversely affected the Adani Group, our shareholders, and investors. The volatility in Indian stock markets created by the report is of great concern and has led to unwanted anguish for Indian citizens,” Adani Group’s lead head Jatin Jalundhwala said in a statement.
The report and its unsubstantiated contents were designed to have a deleterious effect on the share values of Adani Group companies as Hindenburg Research, by their own admission, is positioned to benefit from a slide in Adani shares, he said.
“We are deeply disturbed by this intentional and reckless attempt by a foreign entity to mislead the investor community and the general public, undermine the goodwill and reputation of the Adani Group and its leaders, and sabotage the FPO (Follow-on Public Offering) from Adani Enterprises,” he said.
“We are evaluating the relevant provisions under US and Indian laws for remedial and punitive action against Hindenburg Research.” Hindenburg, a US-based investment research firm that specializes in activist short-selling, said on Wednesday that its two-year investigation revealed that Adani Group has “engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades”.
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