As a result of the Hindenburg report, Adani Group has experienced a loss of ₹3.5 lakh crore in market capitalization over just two trading sessions. Adani Enterprises, the main company of the group, had announced plans to raise ₹20,000 crore through a Follow-on Public Offering (FPO) last week. However, the loss in market capitalization is over 17 times the planned FPO, which is the largest FPO in Indian capital markets history.
On Friday, the decline in stock values of Adani Group companies intensified as they lost up to 20% in value, following the claims made in a short-seller Hindenburg report. Many Adani stocks hit lower circuits, with Adani Ports experiencing a steep drop of nearly 20% to reach a two-year low of Rs 572.25. Adani Transmission, Adani Green, and Adani Total Gas also saw a decline of 20% each. Adani’s recently acquired companies, ACC and Ambuja Cements, saw a decrease of 15% and 25% respectively.
Additionally, Adani Enterprises, the flagship company of the group, which launched its Rs 20,000 crore FPO, experienced a 10% decrease to Rs 3047.55.
The stocks of Adani Power dropped 5% to reach a low of Rs 248.05, while Adani Wilmar and NDTV also experienced a 5% decline, closing at Rs 517.30 and Rs 256.35 respectively.
The Adani Group, led by Gautam Adani, has announced plans to take legal action against American short-seller Hindenburg Research in both US and Indian courts. The company is seeking both remedial and punitive measures.
The company stated that Hindenburg’s report is maliciously mischievous and unresearched. They are deeply disturbed by this intentional and reckless attempt by a foreign entity to mislead the public and investors, harm the reputation of the Adani Group and its leaders, and impede the Follow-on Public Offering (FPO) from Adani Enterprises.
Hindenburg Research has defended its report, stating that it stands by its findings. The research firm said that Adani Group has refused to address the questions raised in the report and instead resorted to using bluster and threats.
The recent decline in the Indian equity market over the past two days has been linked to the impact of the report. Additionally, concerns raised in the whistleblower’s report have led to a decline in banking stocks due to debt-related issues