Wednesday, March 22, 2023
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Why did Adani Group Stock crash by 20%?

The shares of the seven publicly traded firms owned by the Adani Group continued to decline on Friday after Hindenburg Research disclosed that it had taken a short position in some of the group’s securities, a claim the group denounced as baseless.

The conglomerate referred to the report on the organization as a malicious combination of selective misleading information and inappropriate, and it is considering suing the American investor over research that accused the company of Asia’s wealthiest person of “brazen” accounting scandals and market manipulation and accounting irregularities.

Why did Adani Group Stock crash by 20%?

Everything you need to know about Adani Group’s 20% Share Crash!

Adani Transmission shares fell almost 19%, Adani Total Gas shares fell 19.1%, and Adani Green Energy shares fell approximately 16% on the BSE in the early trading session, and these companies had their largest daily declines since mid-March 2020. Even as it began its ₹20,000 crore follow-on public offer (FPO), Adani Enterprises was trading more than 2% down.

On January 31, 2023, the offering will end. Shares will be sold in the range of ₹3,112 to ₹3,276. The flagship company of the conglomerate run by billionaire Gautam Adani announced on Wednesday that it has raised ₹5,985 crore from anchor investors in advance of the offer.

Later, in a statement posted to Twitter, Hindenburg asserted that it completely stands by its report and that it will support any legal action taken by the Adani Group. The Hindenburg report describes a web of Adani family-controlled offshore shell companies in tax havens from the Caribbean and Mauritius to the UAE, alleging that these entities were used to steal money from the group’s publicly traded enterprises while supporting money laundering, corruption, and taxpayer fraud.

Why did Adani Group Stock crash by 20%?

Adani Group has regularly rejected debt-related challenges. The Nifty and Sensex benchmark indices fell to three-month lows as a result of the decline in Adani stock prices, which also had an effect on the stocks of state-owned and private lenders with exposure to the firm.


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