Influencer Editorial Team
he recent Hindenburg Research report has caused a major shakeup in the Adani Group, with a drop of nearly $100 billion in the market-cap of seven listed Adani Group companies since January 24. The report’s allegations of fraud, market manipulation, and improper use of offshore tax havens have sent shockwaves through the financial community, causing a free fall in the group’s shares.
The fall in the company’s stock was highlighted on February 2 when Adani Enterprises fell by 26.39% to ₹1,566.95 on BSE. Other Adani Group companies such as Adani Ports, Adani Power, Adani Transmission, Adani Green Energy, Adani Total Gas, and Adani Wilmar also experienced significant drops.
The lack of auditory supervision and regulatory investigation has raised concerns among market participants. According to Sonam Srivastava, founder and CEO at Wright Research, “the regulator has not taken any steps to investigate their business processes or price actions.”
Adani Group’s influence, rather than exposure, has caused the shock to the system. The conglomerate, which spans ports, coal mines, food businesses, airports, and media, had accounted for more than 6% of the National Stock Exchange market value before the recent events. The recent drop in the company’s bonds to distressed levels and the cancellation of a fully subscribed FPO has only added to the uncertainty surrounding the Adani Group’s future.
