Lost your password?
Don't have an account? Sign Up

Hindenburg report crashes Adani stock, wiping out $47 Billion in Market Value!

Hindenburg Research strikes again!

Shares of several companies linked to India’s richest man, Gautam Adani, fell sharply Friday, losing tens of billions of dollars in market value after a U.S. short seller’s allegation of fraud at his sprawling conglomerate continued to unnerve investors.

Tweet on Adani stock fluctuation amid Hindenburg’s report

Bloomberg on Adani stock fluctuation 

Five of the seven listed Adani Group companies ended the day 16% to 20% lower, and the other two fell by the maximum 5% permitted by India’s exchanges for their stocks.

The declines were much steeper than two days ago when the Adani stocks fell hours after Hindenburg Research published a lengthy report alleging malpractice at the Indian billionaire’s namesake conglomerate.

  • India’s stock market was closed on Thursday for a public holiday.

Adani Group on Thursday called Hindenburg’s fraud allegations baseless and accused the short seller of trying to smear its reputation and derail a public stock offering by one of its companies.

It said the volatility in India’s stock market created by the report has “led to unwanted anguish for Indian citizens.” The group also said it is considering legal action against the U.S. firm.

Together, the seven Adani companies have lost the equivalent of around $47 billion in market value since Hindenburg’s report was published. They had a total market capitalization of about $217 billion earlier this week, according to FactSet.

Some market participants blamed Friday’s selloff partly on a tweet by U.S. hedge-fund manager Bill Ackman, another high-profile short seller, that expressed support for Hindenburg.

Mr. Ackman, who said he doesn’t have a position in any Adani companies, said he had found the Hindenburg report “highly credible and extremely well researched.”

An Adani spokesperson on Friday said the group didn’t have an immediate comment on the stock selloff.