The Adani group lost nearly Rs 2 lakh crore in market capitalisation in early trading hours on Friday, taking the overall decline in its market capitalisation to over Rs 2.75 lakh crore since Tuesday’s closing.
This following the release of a report by Hindenburg Research. Hindenburg Research , the investment research firm alleged that Adani Group has engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades.
“While the shares of Adani Total Gas fell sharply by 17 per cent, Adani Green Energy and Adani Transmission fell by over 12 per cent. Ambuja Cement and ACC fell by over 6 per cent, while Adani Power and Adani Wilmar shares were down 5 per cent each. The group’s flagship company Adani Enterprises was down 3.5 per cent,” read Indian Express report.
“Gautam Adani, Founder and Chairman of the Adani Group, has amassed a net worth of roughly $120 billion, adding over $100 billion in the past 3 years largely through stock price appreciation in the group’s 7 key listed companies, which have spiked an average of 819% in that period,” it said.
Adani group, which is led by Gautam Adani, the world’s third richest person according to Forbes Magazine, dismissed the US short seller’s claims as baseless, saying it was timed to damage its reputation ahead of a large share offering.
Meanwhile, Adani Group said it is planning to sue Hindenburg Research for its “maliciously mischievous” report which alleged “brazen stock manipulation and accounting fraud scheme” by the group over the course of decades.
“We are evaluating the relevant provisions under US and Indian laws for remedial and punitive action against Hindenburg Research,” Jatin Jalundhwala, Group Head – Legal, Adani, said in a statement.
Hindenburg Research said on Thursday that Adani hasn’t addressed a single substantive issue they raised in their report.
“In the 36 hours since we released our report, Adani hasn’t addressed a single substantive issue we raised. At the conclusion of our report, we asked 88 straightforward questions that we believe give the company a chance to be transparent. Thus far, Adani has answered none of these questions,” the United States based group said in a statement.
“Instead, as expected, Adani has resorted to bluster and threats. In a statement to media today, Adani referred to our 106-page, 32,000-word report, with over 720 citations and prepared over the course of 2 years, as “unresearched” and said it is “evaluating the relevant provisions under U.S. and Indian laws for remedial and punitive action” against us,” read the statement.