As a result of a report by Hindenburg Research alleging that the Indian conglomerate had engaged in stock manipulation and accounting fraud schemes over the course of the previous few decades, the market capitalization of the ten listed Adani Group stocks has been declining since Wednesday and is still doing so as of Friday. The publication of Hindenburg Research’s study coincided with Adani Enterprises’ upcoming Friday, January 27, announcement of its Rs 20,000 crore follow-on public offer for subscription.Early trades saw a 6.2% decline in the flagship firm of the group, Adani Enterprises, while losses were also recorded by Adani Ports and SEZ, Adani Power, Adani Wilmar, Ambuja Cement, Adani Green, and Adani Total Gas. In contrast, at 9:30 AM, the benchmark S&P BSE Sensex fell 578 points, or over 1%. Following the claims, the overall market value of the group’s equities fell by Rs 96,672 crore, from Rs 19.20 crore on January 24 to Rs 18.23 crore.
On its website, Hindenburg Investigation claimed to specialise in forensic financial research. With a historical concentration on equities, credit, and derivatives analysis, it claims to have decades of experience in the investment management business. According to the firm website, “We believe the most effective research results from unearthing hard-to-find information from unusual sources,” even though fundamental analysis helps us make investing decisions.The complex web of transactions that several of the listed Adani Group entities have engaged in have been highlighted by Hindenburg researchers.
Group Chief Financial Officer Jugeshinder Singh had stated in a statement on Wednesday: “We are startled that Hindenburg Research issued a report on January 24, 2023, without making any attempt to contact us or verify the factual matrix. The Reserve Bank of India and the Securities and Exchange Board of India must conduct a “serious probe” into the research, the Congress requested on Friday.
By Bidisha Mohanty
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