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Adani Group slams report that sent stocks crashing

MUMBAI: The Adani Group on Wednesday denounced as “baseless” and “malicious” a damning report by a five-year-old US research firm that crashed the share price of group companies, leading to a combined market capitalization loss of nearly Rs 97,000 crore ($12 billion) .
Hindenburg’s report, which examines stocks, debt and cryptocurrencies, came on the eve of flagship Adani Enterprises’ Rs 20,000-crore follow-on public offering (FPO).
Titled “Adani Group: How the World’s Third Richest Man Pulls the Biggest Scam in Corporate History,” the report from Hindenburg Research, a firm that researches stocks, debt, and cryptocurrencies, claimed the group was involved. in brutal stock manipulation and accounting fraud over decades”.

Hindenburg Reports Are Motivated: Adani Group CFO After Company Loses $6 Billion A Day

Hindenburg also said it had taken a short position in shares of Adani Group companies through offshore channels. It also said the group’s main listed companies have taken on significant debt, including pledging shares of their inflated shares for loans, “leaving the entire group in a precarious financial position”.
Adani Group quickly dismissed the report, calling it “a malicious combination of selective disinformation, stale and baseless allegations that have already been tested and rejected” by the Supreme Court. The conglomerate, with interests in edible oil, energy and infrastructure, said it had not been contacted before the report was published.
“The timing of the publication of the report clearly betrays a brutal, malicious intent to undermine the reputation of the Adani Group with the main aim of damaging the upcoming FPO for Adani Enterprises, the largest-ever FPO in India,” said Jugeshinder. Singh, CFO of the Adani Group. said.
It believes that its “informed and well-informed investors” would not be swayed by “one-sided, motivated and unsubstantiated reports with vested interests”.
“The group has always complied with all laws regardless of jurisdiction and maintains the highest standards of corporate governance,” said Singh.
Despite the group’s denial, the damage to the stock prices and market capitalization of the group’s companies was significant. All shares of the Adani Group fell sharply during the early trades, but recovered some of those losses to close at levels above intraday lows.
Adani Transmission lost 8.9%, Ambuja Cements 7.7%, ACC 7.3%, Adani Ports 6.3%, Adani Total Gas 5.6%, NDTV, Adani Power and Adani Wilmar each lost 5%, Adani Green Energy lost 3% while Adani Enterprises closed 1.5% lower (see image).
As a result, the combined market capitalization of the group stood at just over Rs 18.2 lakh crore, down from nearly Rs 19.2 lakh crore on Tuesday.
The FPO for Adani Enterprises opens on Friday and closes on January 31. Late on Wednesday, it said its Rs 6,000 crore anchor book was fully subscribed.

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