Short-seller Hindenburg Research’s report and the Adani Group’s decision to call off its flagship Adani Enterprises Ltd.’s follow-on public offer has sent the conglomerate’s stocks spiralling, erasing more than $100 billion in valuation.
The total market capitalisation of the group tanked to Rs 10,00,000 core on Feb. 3, from Rs 19,20,000 crore on Jan. 24, the day of the Hindenburg’s report release.
All 10 of the group stocks fell on a weekly basis as the Indian billionaire battled to restore confidence after accusations of “stock manipulation” by Hindenburg Research. The Adani Group has called the report a “malicious combination of selective misinformation and stale, baseless, and discredited allegations that have been tested and rejected by India’s highest courts”.
Adani Enterprises Ltd. fell by 35% to its 52-week low of Rs 1,017.47 apiece on Friday, the 10th day after the report was released on Jan. 24. However, it along with other group stocks recovered from the day’s lows.
On Friday, Adani Ports and Special Economic Zone Ltd., ACC Ltd., Ambuja Cements Ltd., and Adani Enterprises Ltd. advanced.
Adani Wilmar Ltd., Adani Transmission Ltd., Adani Green Energy Ltd., Adani Total Gas Ltd., and Adani Power Ltd. declined in trade.
