What continues to be the result?
The report offers sparked a huge sell-off in shares in Adani’s firms, wiping out more than US$68 billion in their market value, according to Bloomberg Information. Trading in some stocks was temporarily stopped.
Adani’s private wealth has dove by around US$40 billion and he has tumbled down the real-time Forbes rich listing to number eight.
The timing was also terrible, coming just as Adani Group is seeking to raise US$2. 5 billion dollars to strengthen the finances with a sale for shares that is because of expire on Tuesday (Jan 31).
How has Adani reacted?
On Jan 25, Adani’s finance chief the Hindenburg report the “malicious combination of selective misinformation and stale, baseless and discredited allegations that have been examined and rejected by India’s highest courts”.
On Weekend the firm released a 413-page declaration that it said rebutted all of Hindenburg’s states, calling the group the “Madoffs of Manhattan” – a mention of the crooked financier Bernie Madoff.
“This is not merely an unwarranted attack on any specific corporation but a calculated attack on India, the independence, integrity and quality of Indian institutions, as well as the growth story plus ambition of Indian, ” it mentioned.
Did this particular reassure investors?
Some of Adani’s firms inched back upwards on Monday, but on the whole investors continued to dump Adani stock, wiping away from billions more in market value.
Hindenburg said that only about thirty pages of the Adani statement focused on issues related to its statement.
“The rest of the response contains 330 pages associated with court records, along with 53 pages of high-level financials, general details, and details on unimportant corporate initiatives, such as how it stimulates female entrepreneurship and the production of safe vegetables, ” this said.