Adani stocks: Fresh Hindenburg allegations trip Adani stocks, some fall up to 7%

Mumbai: Shares of Adani Group companies fell by up to 7% Monday as the sentiment soured following fresh allegations by the US-based short-seller Hindenburg that Sebi chief Madhabi Puri Buch and her husband, Dhaval Buch, held stakes in Bermuda and Mauritius-based offshore funds used by Gautam Adani’s brother, Vinod Adani, to “amass and trade large positions in shares of Adani Group.”

After the initial drop on Monday, some Adani stocks recovered later in the day. Adani Wilmar, Adani Total Gas, and Adani Energy Solutions ended about 4% lower, while NDTV, Sanghi Industries, and Adani Port fell between 2% and 3%.

Adani Green Energy, which dropped as much as 7% earlier in the day to a low of ₹1,656, rebounded to close 1.12% higher at ₹1,800. Ambuja Cement gained 0.5% to close at ₹635.75.

The Adani Group, comprising 11 listed companies, collectively lost around ₹29,000 crore, with the market capitalization falling to ₹16.97 lakh crore from ₹17.26 lakh crore on Friday.

Agencies

Hindenburg’s initial report on the Adani group in January last year had triggered a sharp sell-off in its stocks subsequently. The report alleged accounting fraud and stock price manipulation within the group. The Gautam Adani-led group has denied all allegations against it. The rout in Adani Group stocks erased their market value by as much as about Rs 12.5 lakh crore.

The group has recovered more than Rs 10 lakh crore in market capitalisation. Currently, seven Adani stocks are trading below their January 24, 2023 prices, with Adani Total Gas and Adani Energy Solutions trading 79% and 68% lower, respectively

On Sunday, Madhabi Puri Buch and Dhaval Buch said the fund IPE Plus, in which they had invested, never acquired bonds, equities, or derivatives of any Adani company. They said all disclosures of securities held and transferred, as well as the chairperson’s recusals, adhered to Sebi’s code of conduct, and rejected the allegations made in the Hindenburg report.

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