Adani Group Fry-Day: 7/10 Adani Stocks Hit Upto 20% LCs on Hindenburg Claims
By Malvika Gurung
Investing.com -- Shares of the ports-to-power conglomerate major Adani Group companies extended their freefall for the second consecutive session on Friday, crashing up to 20%, following the stir-up created by claims made in the Hindenburg Research report.
Shares of mega-cap giant Adani Total Gas (NS: ADAG ) hit a 20% lower circuit at Rs 2,928 apiece on Friday, while the Adani Group’s flagship company Adani Enterprises (NS: ADEL ) hit a 10% lower circuit at Rs 3,050.05 apiece.
The remaining Adani stocks, along with its recently-acquired cement makers ACC (NS: ACC ) and Ambuja Cements (NS: ABUJ ), plummeted on Friday, with Adani Green Energy (NS: ADNA ), Adani Ports and SEZ (NS: APSE ), Adani Power (NS: ADAN ) and Adani Wilmar (NS: ADAW ), all hitting 5-20% lower circuits.
The mega-cap stock Adani Transmission (NS: ADAI ) crashed 20% to Rs 2,021.25 apiece on Friday, ACC plunged 12.4%, Ambuja Cements slashed 19.4% and NDTV (NS: NDTV ) hit a 5% lower circuit.
Adani Group stocks eroded nearly Rs 1 lakh crore from investors’ wealth in the Wednesday session after the US investment research firm Hindenburg Research LLC released a 2-year investigation report on India’s second-largest conglomerate, alleging Adani Group to be engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades.
The whistleblower’s report 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.
“Key listed Adani companies have also taken on substantial debt, including pledging shares of their inflated stock for loans, putting the entire group on precarious financial footing. 5 of 7 key listed companies have reported ‘current ratios’ below 1, indicating near-term liquidity pressure,” cited Hindenburg in its report.
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.
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No watch dog in india raised any alarm till date . What a pity.Like 1
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Janch ka vishay hi hinderber ki es company me kitna short position hi.Like 1
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Big question is how SEBI don’t know. Or SEBI know everything but covering up under pressure. Just think how safe is your money or taxpayer’s hard earned money. People invest money ti make his future secure but things goes opposite to make them poorer with his no fault.Like 10
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Hindenburg has done hit job. Veracity of the report is big question mark. Because said firm is indulging in Short Selling. Means it has unjustly created havoc with its report. Its only intention is to make money illegally.Like 4
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ek din hona hi tha.thank god it happened now otherwise SBI Bank -----+++Like 3
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Someone had to come out. Thankfully they did.Like 5
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Like 1
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one report which is not true yet to be verified has damaged entire stock market .this shows how foolish and stupid investment india has ..it dances to every tune . I wish I could have born in u s ..our market is not fit for trading .so sensitive not goodLike 8
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why don't you buy nowLike 3
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😂😂😂😂L LAG GAYELike 1
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adani will be stupid n shamefulLike 1
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Once u close short positions give positive feedback for company 🤣🤣Like 6
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