Adani Group Stocks Plunge 17% After Hindenburg Claims

In a dramatic turn of events, shares of the Adani Group experienced a significant drop of up to 17% following fresh allegations from the US-based short seller firm, Hindenburg Research. The new claims have stirred considerable market turbulence, causing a sharp decline in the group’s stock prices.

Hindenburg’s Allegations

Hindenburg Research, known for its controversial reports, alleged that recent whistleblower documents reveal Securities and Exchange Board of India (Sebi) Chairperson Madhabi Puri Buch’s involvement with obscure offshore entities linked to the “Adani money siphoning scandal.” These accusations have intensified scrutiny on the Adani Group.

- Advertisement -

Adani Group’s Response

The Adani Group has strongly refuted these claims, labeling them as “malicious,” “mischievous,” and “manipulative.” In a detailed statement, the group denounced the allegations as baseless attempts at character assassination. Sebi Chairperson Madhabi Buch, along with her husband, has also dismissed the accusations as unfounded.

Impact on Stock Prices

The fallout from these allegations was immediate. Adani Power saw a drastic decline of 10.94%, with its stock touching a low of Rs 619 on the Bombay Stock Exchange (BSE). Adani Enterprises fell by 5.27%, reaching a low of Rs 3,018.55.

- Advertisement -

Adani Energy Solutions faced the most severe drop, plummeting 17.06% to Rs 915.70 before showing signs of recovery. Similarly, Adani Green Energy dropped 6.96% to Rs 1,656.05.

Other Adani stocks also experienced declines, with Adani Total Gas tumbling 13.39% to Rs 753, later recovering to Rs 829.85, down 4.55%. Adani Wilmar decreased by 6.49% to Rs 360, and Adani Ports fell 4.95% to Rs 1,457.35. ACC, Ambuja Cements, and NDTV also saw reductions of 2-3%.

- Advertisement -

Connections and Reactions

Hindenburg’s report drew attention to connections between the IPE Plus Fund, where Sebi Chairperson Madhabi Buch had investments, and the Adani group. Anil Ahuja, Founder and Chief Investment Officer of the IPE Plus Fund, was noted to have previously served as a director of Adani Enterprises and Adani Power.

The Adani Group clarified that Ahuja’s tenure as a director was during his time as a nominee director representing the 3i investment fund and emphasized there was no direct commercial relationship with the mentioned individuals. They further explained that Ahuja’s departure from the fund in 2018 led to the redemption of their investment, asserting that the fund had not invested in Adani Group securities.

Market Analysts’ Views

Market analysts have mixed views on the impact of these allegations. Vinit Bolinjkar from Ventura Securities described the Hindenburg claims as “recycling of the same thing,” suggesting the report presents no substantial new evidence. He expects the impact on Adani stocks to be temporary, with a likely recovery in the near future.

Similarly, Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, anticipates a short-lived market reaction. Bathini believes that if the allegations do not significantly affect the Adani Group’s earnings, stock prices should recover. He noted that stock prices are generally driven by earnings and does not foresee long-term damage to the group’s financial performance.

Message from Aakhir Tak by SCNN:

Thank you for choosing our news coverage. We are committed to delivering precise, timely, and thought-provoking updates on the most critical events. Your support empowers us to maintain the highest standards of journalism. If this article resonates with you, please share it widely. We value your feedback immensely—don’t hesitate to leave a comment or reach out with any suggestions. Stay with us for more comprehensive reports and updates on the stories that impact your world. For exclusive content and real-time news, follow us on social media and subscribe to our newsletter. Together, we can stay informed and make a difference. Visit www.aakhirtak.com for Hindi news and scnn.aakhirtak.com for English news. For the latest tech insights, be sure to check out www.saraswatichandra.in. Stay informed, stay engaged.