Hindenburg Research, a US-based investor research firm specialized in short selling, alleged that the Adani Group led by Gautam Adani, has engaged in a brazen stock manipulation and accounting fraud scheme, accelerated with five of the seven key listed Adani companies hitting the lower circuit, ending up in a loss of Rs. 3.37 lakh crore in the Adani Group’s market capitalization.
The group has lost Rs. 4.17 lakh crore in market cap. The fall in Adani stocks also coincided with a down trend in broader indices. On Friday the BSE Sensex fell by 1192 points intra-day before closing 1.45 per cent, or 874 points, down at 59,330.90 while, the NSE Nifty fell sharply 1.61 per cent, or 287.5 points down at 17,604.35.
The investment research firm on 24th January released the scathing report damaging the reputation of Asia’s 2nd richest person Gautam Adani. Therefore Adani group mentioned its plan to file a lawsuit in the US against Hindenburg research firm.
However, Hindenburg said it will demand documents in the legal discovery process if Adani Group files a lawsuit in the US against them for the report. They also clarified that the firm fully stands by its report, and any action against the firm will be ‘meritless’.
On Sunday, the conglomerate likened the damning allegations made by Hindenburg research report to a “calculated attack” on India, its institutions and growth story, saying the accusations are “nothing but a lie”. The group sent a 413 page response to Hindenburg research claiming that they had complied with all local laws and made the necessary regulatory disclosures.
But Hindenburg research replied “fraud is fraud, even when it’s perpetrated by one of the wealthiest individuals in the world”.
The research firm also said “India’s future is being held back by the Adani Group, which has draped itself in the Indian flag while systematically looting the nation, ” The Wire reported.
Due to the shocking research report allegation against Adani Group, Gautam Adani’s position in the global rich list ranking has now slipped from 2nd to 7th spot. His net worth went down by nearly 20%.
On Monday the company’s stocks ended on a mixed note. Excluding Adani Enterprise and cement arms shares, all other listed stocks of Adani Group took a bloodbath. Investors witnessed a loss of over ₹1.53 lakh crore in market cap.
