Tuesday, March 21, 2023

Adani Group losses mount to over Rs. 5 lakh crore

Shares of Adani Group continued to bleed on Monday for the third straight trading session after a report by US-based firm Hindenburg Research accused the conglomerate of stock manipulation and improper use of offshore tax havens.
The losses in investor wealth in Adani stocks rose to nearly Rs 5.4 lakh crore in afternoon trading on Monday, according to Reuters. In a report published last week, Hindenburg had claimed that key listed companies of the Adani Group are on a “precarious financial footing”. It had also alleged that the conglomerate headed by India’s richest person, Gautam Adani, has amassed substantial debt by pledging overvalued shares.
Shares of the Adani Group started dwindling soon after the report came out last Wednesday, and the rout continued on Friday. The markets were closed on Thursday on account of Republic Day. Investor sentiments did not improve over the weekend as most of the group’s stocks kept losing as markets opened on Monday.
At 2.20 pm, the flagship stock Adani Enterprises was gaining more than 2%. But all the other stocks of the group were facing losses – Adani Ports (1.77%), Adani Transmission (20%), Adani Green Energy (20%), Adani Total Gas (20%), Adani Power (5%), Adani Wilmar (5%).
On Sunday, the Adani Group issued a 413-page response, in which it described the Hindenburg Research report as a “calculated attack” on India and its institutions. It alleged that the mala fide intention of Hindenburg was apparent as the report was released ahead of a $2.5 billion share sale by its flagship firm Adani Enterprises.
On Monday morning, Hindenburg retorted saying Adani Group cannot obfuscate its fraud by nationalism. “We also believe India’s future is being held back by the Adani Group, which has draped itself in the Indian flag while systematically looting the nation,” Hindenburg Research said in a statement.


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