By Malvika Gurung
Investing.com -- Shares of the ports-to-power conglomerate major Adani Group companies tanked up to 7.3% on Wednesday’s intraday trade, with Adani Ports & SEZ plunging 6.8% to Rs 709.65 apiece while writing.
Adani Group’s flagship company, Adani Enterprises’ stock tumbled 3.7% to Rs 3,315 apiece in the session today, while all seven of the conglomerates listed companies sank, along with the stocks of its recently acquired cement makers ACC (NS: ACC ) and Ambuja Cements (NS: ABUJ ).
The reason behind the share dip is a report published by the US investment research firm Hindenburg Research LLC, which has alleged that India’s second-largest conglomerate, Adani Group has engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades.
Hindenburg is a prominent research firm, specializing in activist short-selling. It holds short positions in Adani Group companies through US-traded bonds and non-Indian-traded derivative instruments, cited Reuters, pulling stocks of the conglomerate lower on Wednesday.
It has alleged the Rs 17.8 trillion-worth Adani Group of a wide range of allegations concerning corporate malpractice and detailed findings of many Adani-family-controlled offshore shell entities involved in money laundering, theft of taxpayer funds and corruption.
The report states that even though Adani Group’s 7 listed firms have 1-year returns of up to 167%, their combined downside stands at 85%, purely on a fundamental basis owing to sky-high valuations.
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Govt ,banks ,Nse ,sebi all are silent spectator!!Like 0
Any research company across world should not be allowed to take long or short positions to avoid such issuesLike 1
SEBI should investigate along with the SEC on the manipulation by hindenburg. boy they did make billions todayLike 6
I think Hindenburg Research LLC have a short position in Adani & wants to make hugh profit from its short position. Hence give such type of statements.Like 10
Hyndenburg will soon realise the full force of crony capitalismLike 2
Hindenburg Research LLC will soon get run for its money, as so far these guys never shorted anything like ADANI ....They know shell companies, stock manipulation etc but still dared to short... Interesting space to watch as to who shorts and who gets shorted inturn 🤪😝Like 3
these goras will never see an indian firm doing awesome businesses around the globe and threatening/challenging their businesses here and there.Like 7