Adani Group Shares Tumble After Damaging Report By US Research Firm

New Delhi: After scathing allegations from the US-based investment research firm Hindenburg Research, the Adani group equities were still under pressure on Friday, dropping up to 20% in morning trade.

Adani Total Gas shares fell 19.65%%, Adani Transmission shares fell 19%, Adani Green Energy shares fell 15.50%, and Adani Enterprises shares crashed 6.19% on the BSE.

Adani Wilmar plummeted 5%, Adani Power sank 4.99 %, while Adani Ports and Special Economic Zone had also declined.

Due to intense selling in the financials, banking, energy, and IT industries, the 30-share BSE benchmark fell 1,106 points, or 1.84 per cent, to trade at 59,098.37 in the broader market.

For its “reckless” attempt to thwart a mega share sale at the conglomerate’s flagship firm, the Adani Group said on Thursday that it is looking into legal options to take “punitive action” against Hindenburg Research. In response, the US activist investor said that it stands by its report that alleged “brazen” market manipulation and accounting fraud by the group.

He claimed that Hindenburg Research, who admittedly stands to gain from a decline in Adani shares, devised the analysis and its unsupported claims to have a negative impact on the share values of Adani Group firms.

“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,” Adani Group’s lead head Jatin Jalundhwala said in a statement.

“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 specialises 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”.