Adani Group share crash up after Hindenburg report
Adani Group company’s shares intensified selling pressure in the second trading session on Friday and lost up to 20 percent. The group lost nearly Rs 2 lakh crore in market capitalization in early trading.
Adani Ports lost nearly 20 percent to hit a two-year low at Rs 572.25, while Adani Transmission NSE was down 18.93 percent, Adani Green, and Adani Total Gas NSE was down 20.00 percent and also lost 20 percent each. Adani’s two new acquisitions – ACC lost 15 percent while Ambuja Cements shares crashed up to 25 percent. The group’s flagship company Adani Enterprises was down 3.5 percent.
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Adani Group statement
“We are evaluating the relevant provisions under US and Indian laws for remedial and punitive action against Hindenburg Research,” Jatin Jalundhwala, Group Head – Legal, Adani, said in a statement.
Responding to the legal threat, Hindenburg Research said it stood by its report and believed any legal action taken against it would be “meritless”.
Hindenburg Research tweeted, “our response to Adani:”. “If Adani is serious, it should also file suit in the US where we operate. We have a long list of documents we would demand in a legal discovery process,” the investment research firm said on Twitter.
Our response to Adani: pic.twitter.com/6NcFKR8gEL
— Hindenburg Research (@HindenburgRes) January 26, 2023
The research firm also said in the 36 hours since it released the report, Adani hadn’t addressed a single substantive issue it had raised.
The overall decline in group share market capitalization to over Rs 2.75 lakh crore since Tuesday’s closing. Markets were closed on Thursday on account of Republic Day.
Adani Enterprises’ Rs 20,0000 crore follow-on public offering (FPO) hit Dalal Street on Friday, 27 January 2023. The issue can be subscribed till Tuesday, 31 January 2023, and investors can bid for the shares in the range of Rs 3,112-3,276 apiece with a lot size of four equity shares.
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