Adani Group Stocks Continue To Crash After Damaging Report By US Research Firm

New Delhi: The net worth of business tycoon Gautam Adani continued to decline.

The downward trend of shares of seven listed Adani Group companies bled on Friday as well, with some hitting the lower circuit and others falling up to 20%.

There was lukewarm response to Adani Enterprises Ltd’s follow-on public offer (FPO) worth Rs 20,000 crore, which kicked off on Friday.

It will sell shares in the price band of ₹3,112 to ₹3,276 apiece and the issue will close on January 31, 2023. The Adani Group company on Wednesday said it has raised ₹5,985 crore from anchor investors ahead of the offer.

Retail investors booked just 2% — 399,880 shares against the reserved portion of 2,29,08,464 shares.

The bloodbath is an after-effect of a scathing report by US-based investment research firm Hindenburg Research.

Hindenburg said on Wednesday that its two-year investigation revealed that Adani Group has “engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades.”

Adani Group said the report was ‘maliciously mischievous and unresearched.’

“The report has adversely affected the Adani Group, our shareholders and investors. The volatility in Indian stock markets created by the report is of great concern and has led to unwanted anguish for Indian citizens,” Adani Group’s lead head Jatin Jalundhwala said in a statement.

Adani Group also stated that it is examining legal options to take ‘punitive action’ against Hindenburg Research for its ‘reckless’ attempt to sabotage a mega share sale at the conglomerate’s flagship firm.

Hindenburg responded by saying it stands by the report that alleged ‘brazen’ market manipulation and accounting fraud by Adani Group.