Shares of seven listed companies of the Adani group crashed for the second straight day on Friday after Hindenburg Research said it took a short position in some securities of the group, which the group dismissed as ‘unfounded’.
The group termed the report on the group a malicious combination of ‘selective misinformation and stale’ and is seeking legal action against the US investor, alleging ‘brazen’ market manipulation and accounting fraud by the empire of Asia’s richest man. Is.
Shares of Adani Transmission rallied over 19% and Adani Total Gas 19.1% since mid-March 2020, while Adani Green Energy declined nearly 16% on the BSE in the early trading session.
Meanwhile, Adani Enterprises was trading down over 2% even as it kicked 20,000 crore follow-on public offer (FPO) today. Will sell shares in the price band of from 3,112 3,276 each and the issue will close on January 31, 2023. billionaire’s flagship firm Gautam Adaniled group said on Wednesday that it has increased 5,985 crore from anchor investors before the offer.
Later in a statement on Twitter, Hindenburg said he fully stands by his report and would in fact welcome any legal action by the Adani Group. “If Adani is serious, it should also file a lawsuit in the US where we operate. We have a long list of documents to be sought in the legal discovery process,” the statement posted on Twitter read.
The Hindenburg report details a web of Adani-family-controlled offshore shell entities in tax havens stretching from the Caribbean and Mauritius to the United Arab Emirates, which it claims are used to promote corruption, money laundering and taxpayer evasion. While the funds of the group were misappropriated. Listed companies.
Adani Group has repeatedly dismissed the debt concerns. Its Chief Financial Officer (CFO) Jugshinder Singh said on a media call on January 21 that “we are deeply troubled by this deliberate and reckless attempt by a foreign entity to mislead the investing community and the general public, damaging the goodwill and reputation of Let’s reduce.” Adani Group and its leaders, and sabotage the FPO (Follow-on Public Offering) from Adani Enterprises.”
(with inputs from agencies)
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