Adani: Adani Group will take legal action against Hindenburg, legal head said this on the report against the group.
Adani Group has said on Thursday that its shareholders and investors have been negatively affected by the Hindenburg research report. The Hindenburg report has accused the Adani group of accounting fraud and stock manipulation. Adani Group’s league head Jatin Jalundhwala has said that the volatility in the Indian stock market due to the report is a matter of concern.
The statement issued by Jalundwala also said that the short seller Hindenburg would benefit from the fall in Adani Group shares. Adani Group has said that it will take legal action against Hindenburg for his misleading report.
Adani Group said, “The report published by Hindenburg Research on January 24, 2023 is malicious and mischievous. It has been prepared without any research. This misleading report has adversely affected the Adani Group, our shareholders and investors. The volatility in the Indian stock markets triggered by the report is a matter of great concern and has caused undue pain to Indians.
Adani Group has said that Hindenburg published unverified material. It was designed to have a detrimental effect on the share prices of Adani group companies. Hindenburg Research itself has admitted in its report that it is in a position to profit from the fall in Adani’s shares. Hindenburg also said in her report that she holds short positions in Adani group companies.
Adani Group shares slide after Hindenburg report becomes public
After the Hindenburg report became public, the shares of Adani Group registered a decline. During this period, shares of Adani Transmission closed at Rs 2,511.75 on BSE, down 8.87 per cent. Besides, shares of Adani Port-SEZ declined by 6.30 per cent to Rs 712.90. Shares of Adani Total Gas closed at Rs 3,668.15 per share, down 5.59 per cent. While Adani Wilmar closed at Rs 544.50 and Adani Power at Rs 261.10 per share with a fall of five per cent each.
After the news related to the report, shares of Adani Green Energy fell by 3.04 per cent. At the same time, the shares of Adani Enterprises, the most prominent company of the group, declined by 1.54 percent. Shares of Ambuja Cements and ACC, which were recently acquired by the Adani Group, also declined by about seven per cent on the BSE. At the same time, the shares of the group’s media firm New Delhi Television (NDTV) declined by five per cent. Explain that in Wednesday’s trading session, the thirty-share BSE Sensex index fell by 773.69 points and closed at 60,205.06 points.
The Congress MP demanded an inquiry into the matter under the supervision of the JPC and the Supreme Court.
Opposition leaders have also turned vocal after American investor Hindenburg Research accused companies owned by billionaire Gautam Adani of “blatant” market manipulation and accounting fraud. A day after publishing the report, Congress MP Manish Tewari said even the partial truth of the allegations should be probed by a Joint Parliamentary Committee (JPC) as well as under the supervision of the Supreme Court.
