After the short seller accused the head of India’s market regulator of having links to offshore funds, the Indian conglomerate that was rocked by a Hindenburg Research report last year faced yet another significant share selloff on Monday ( 12 August ).
By the end of the trading day, Adani firms had already lost more than US$ 13 billion, or 1 %, but that was a significant increase over the previous loss.
The Adani Group and Hindenburg Research engaged in a legal fight 18 months ago when the US short seller claimed Adani improperly used tax have ns, allegations the company refuted on Sunday, claiming that the company’s holdings abroad were completely transparent.
According to Hindenburg, who cited whistleblower documents, Madhabi Puri Buch, the chair of the Securities and Exchange Board of India ( SEBI ) since 2022, has a conflict of interest in the Adani case due to previous investments.
Buch claimed that the claims in the report were untrue, and the controller claimed that Hindenburg Research had conducted an independent investigation into the allegations against the Adani Group.
Shares in the team’s premier strong Adani Enterprises closed out Monday 1.1 per share lower, while Adani Ports, Adani Total Gas, Adani Power, Adani Wilmar and Adani Energy Solutions were down between 0.6 per share and 4.2 per share. Simply Adani Green bucked the pattern, closing 1 per cent higher.
” The claims are coming in a minute,” he said. Over the past year and a half, there have been numerous studies. This is a momentary, knee-jerk effect. Things may get back to normalcy”, said Sunny Agrawal, head of basic equity studies at SBICAPS Securities.
Since Hindenburg’s second document in January 2023, Adani Group’s share price costs have decreased from US$ 32.5 billion to US$$ 150 billion in the immediate aftermath, thanks to investments from Abu Dhabi-based International Holding and US boutique investment firm GQG Partners.