According to a report, the shares of Adani Group companies collapsed and were seen trading in the red soon after Hindenburg Research accused the group of fraud and stock manipulation.
According to reports the seven Adani Group stocks lost Rs 46,086 crore in market capitalization on Wednesday as a result of the Hindenburg allegations. Looking at the finer details, the report states that Adani Total Gas lost Rs 12,366 crore, followed by Adani Ports, which lost Rs 8,342 crore, and Adani Transmission, which lost Rs 8,039 crore.
This forensic financial research firm conducted two years of research and investigation before producing the Hindenburg Research report. Hindenburg Research writes in an official tweet, “Today we reveal the findings of our 2-year investigation, presenting evidence that the INR 17.8 trillion (U.S. $218 billion) Indian conglomerate Adani Group has engaged in a brazen stock manipulation and accounting fraud scheme over decades.”
According to the research, Gautam Adani, the founder and Chairman of the Adani Group, has amassed a net worth of nearly $120 billion over the last three years, primarily through stock price appreciation. It also claims that the group’s seven key publicly traded companies have increased by an average of 819 percent over the year.
The news that Adani Group’s shares have plummeted comes at a time when Adani Enterprises is also considering raising Rs 20,000 crore through a follow-on-public-offer (FPO).
Following the publication of this report, Adani Group stated that the report from the American short-seller is a slanderous attempt to sabotage Adani Enterprises’ FPO, which is set to open on January 27.
According to Adani Group, Hindenburg’s report selectively used false information to claim that the conglomerate was engaged in fraudulent activities. The group also clarified that Hindenburg Research did not contact them before releasing the report.
In response to Hindenburg’s allegations, Adani Group stated that it has always complied with all laws and upholds the highest standards of corporate governance.
After all this, The Adani Group is considering legal action against Hindenburg Research.
