Adani Group companies saw a market value loss of up to $19 billion on Monday following accusations from Hindenburg Research. The research firm alleged that India’s market regulator, SEBI, had ties to offshore funds also used by Adani, as reported by Reuters. Adani Enterprises, the flagship company, dropped 2% in morning trading, with other group companies falling between 2% and 4.5%. Despite an early plunge, losses later narrowed to $9 billion.
Hindenburg Research, known for its critical reports, previously caused a significant disruption in January 2023 by accusing the Adani Group of improper use of tax havens and stock manipulation. This resulted in a $150 billion decline in Adani’s market value, though the company has since recovered much of that loss.
The new allegations focus on SEBI Chair Madhabi Puri Buch and her husband’s purported stakes in an offshore fund linked to Vinod Adani, Gautam Adani’s brother. Both Buch and Adani have denied these allegations. Industry experts, including Sunny Agrawal from SBICAPS Securities, view the market’s reaction as temporary, expecting normalcy to return soon.
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https://www.cnn.com/2024/08/12/business/adani-hindeburg-allegations-shares-plunge
