Adani group stocks continue to bleed, fall up to 19%; Adani Enterprises, Ports buck trend, shares jump 7%

Adani group stocks continue to bleed, fall up to 19%; Adani Enterprises, Ports buck trend, shares jump 7%

Adani group shares continued to bleed on Monday and tumbled up to 19% in the aftermath of the US-based forensic financial research firm Hindenburg Research report, which alleged accounting fraud, stock manipulation and improper use of offshore tax havens by the group. Despite the Adani group’s 413-page response claiming that the allegation are ‘nothing but lies’, Adani group companies’ stocks continued to see sell-off. Aside from Adani Enterprises which jumped more than 7% to Rs 2.966 and Adani Ports which rose 4%, all other Adani group company shares were deep in red. Adani Transmission shares plunged more than 15% on BSE to Rs 1,648 apiece, Adani Green Energy tumbled 16%, Adani Total Gas was down 19%. Adani Wilmar and Adani Power shares tanked 5% to hit the lower circuit.

For the unversed, Hindenburg Research’s report titled ‘Adani Group: How The World’s 3rd Richest Man Is Pulling The Largest Con In Corporate History’ alleged that Gautam Adani, founder and chairman of the Adani Group, had amassed a net worth of roughly $120 billion, adding over $100 billion in the past three years, largely through stock price appreciation in the group’s seven key listed companies, which had spiked 819% on an average of during the period. Adani group called the report baseless, and that it had adversely affected its shareholders and investors. In a 413-page response, Adani Group said the report was driven by “an ulterior motive” to “create a false market” to allow the US firm to make financial gains. Hindenburg Research, in its reply to Adani Group’s response, called out the conglomerate for not answering questions.

In its latest statement, the US-based short seller said that the Adani Group did not respond to questions in its original report, pointing out one on the nature of relationship between Vinod Adani (older brother of Gautam Adani) and Chang Chung-Ling, nor the group’s association with the Chinese national. Further, it alleged that they had shown in one example how an entity that had been an Adani related party made a major investment into one of the suspect offshore holders, “drawing a clear line between the Adani Group and the suspected stock parking entities.” it said.