Shares of Adani Group companies experienced a significant decline on Monday following a new report by U.S. short-seller Hindenburg Research. The report alleges that Madhabi Puri Buch, chair of India’s Securities and Exchange Board (SEBI), had conflicts of interest that hindered a thorough investigation into fraud claims against the Adani Group.
BREAKING NEWS 🚨
Hindenburg Report Adani Group share drop 7% stock market falls .#sharemarket #Modani #Hindenberg #HindenburgReport pic.twitter.com/tR7DLeT9Jx
— Anindya Das (@AnindyaDas1) August 12, 2024
On Monday, the Adani Group’s market value dropped by approximately $2.4 billion, although it rebounded from an initial fall of up to $13.4 billion by the end of the trading day. The group’s flagship company, Adani Enterprises, saw its shares fall by up to 5% in the morning before recovering somewhat. Other Adani Group stocks, including Adani Total Gas, Adani Power, Adani Wilmar, and Adani Energy Solutions, also experienced sharp declines.
Hindenburg’s latest report, released on Saturday, accuses both Madhabi Puri Buch and her husband, Dhaval Buch, of previously having investments in offshore funds that were also used by the Adani Group. The report questions SEBI’s impartiality in overseeing the Adani investigation, suggesting that it may not be a reliable arbitrator in the matter.
Both Madhabi Puri Buch and Dhaval Buch have denied any wrongdoing, dismissing the claims as baseless. In response, Adani Group rejected the allegations from Hindenburg, calling the report a “red herring” and asserting that their overseas holding structure is completely transparent.
Investor caution in the wake of allegations against SEBI chief Madhabi Buch has triggered a significant drop in Adani Group stocks, with shares falling up to 7%. The result? A staggering loss of ₹53,000 crore in market capitalization, bringing the total value pic.twitter.com/dY9RhzWrfB
— Metro TV Odisha (@metrotvodisha) August 12, 2024
The Adani Group, led by billionaire Gautam Adani, is a major player in various sectors, including commodities trading, airports, utilities, and renewable energy. Hindenburg’s report follows a previous one published in January 2023, which accused the Adani Group of stock manipulation and corporate fraud. That report triggered a market rout, erasing over $100 billion in value from Adani’s stocks. Despite these claims, Adani has continued to deny all allegations, and its shares have seen some recovery since the initial report.
Key Points:
i. Adani Group shares fell sharply on Monday after a new report from Hindenburg Research alleged conflicts of interest involving SEBI chair Madhabi Puri Buch.
ii. The group’s market value dropped by around $2.4 billion, although it later recovered from an initial decline of up to $13.4 billion.
iii. The Hindenburg report claims that both Madhabi Puri Buch and her husband had investments in offshore funds linked to the Adani Group, raising questions about SEBI’s impartiality.
iv. Both Madhabi Puri Buch and her husband have denied any wrongdoing, and Adani Group has called the report a “red herring.”
v. This report follows a January 2023 Hindenburg report accusing Adani of stock manipulation and corporate fraud, which led to a significant market drop.
Kirk Volo – Reprinted with permission of Whatfinger News
