Adani loses $100 billion after Hindenburg Research report

Adani Group sign at the company’s gas station in Ahmedabad, India, on Wednesday, February 1, 2023.

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India’s Adani Group racked up market losses of more than $100 billion on Thursday, which has surged since a scathing report of short sellers sparked market turmoil and sent the company into disarray. must return to the sale of shares to the public.

Losses on Gautam Adani’s core businesses amounted to $107 billion as of 10am London time on Thursday as of January 24th publication. a widely important report from New York’s Hindenburg Research, revealed a short position in Adani Group companies.

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Loss of market value for Adani . companies

Company name Market capitalization (billion dollars as of January 24) Market capitalization (billion dollars February 2nd) Total Damage ($ billion) Total damage (%)
Adani Enterprises 48.03 21.80 26.23 54.61
Adani xanh Green Energy 37.09 20.07 17.03 45.90
Port of Adani 20.11 12.18 7.93 39.45
Transmission Adani 37.62 21.20 16.43 43.66
Total Gas Adani 52.29 22.97 29.32 56.07
adani’s strength 12.97 9.51 3.46 26.64
Adani Wilmar 9.12 6.68 2.43 26.67
Ambuja Cement 12.11 8.60 3.51 28.99
ACC 5.37 4.25 1.11 20.76
total 107.45

Source: CNBC, FactSet, as of 10 a.m. UTC February 2

Alleging a two-year investigation, the report accused the corporation of engaging in a “blatant decades-long accounting and securities manipulation scheme.”

Adani staunchly denies the accusations of being “nothing but a lie” from “Madoffs of Manhattan” in a 413-page excerpt failed to appease weak investor sentiment and contain a rapid sell-off.

“It is extremely disturbing that claims by an entity thousands of miles away, with no credibility or ethics, have had an unprecedented and severe adverse impact on our investors. ,” Adani’s response said, describing Hindenburg as an “unethical short seller.”

“Hindenburg did not publish this report for any altruistic reason that was purely out of selfish motives and in flagrant violation of applicable securities and foreign exchange laws,” it said.

Hindenburg on January 29 retort that Adani’s commentary “predictably attempted to shift focus away from substantive issues and instead set off a nationalist narrative, claiming that our report was a ‘calculated attack on India’.”

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Forbes has downgraded Gautam Adani from the list of Top 10 richest men in the world.

The rapid decline in market share of Adani Group companies has raised concerns about broader systemic risks to Indian markets. India’s central bank has asked local banks for details on their exposure to the Adani group, Reuters reported on Thursday, citing government and banking sources.

“Unprecedented” market conditions and high volatility in stock prices on a daily basis have pushed Adani Enterprises let its ax $2.5 billion after public offering (FPO) on Wednesday.

“The interests of investors are paramount and therefore to protect them from any potential financial loss, the Board has decided not to proceed with the FPO,” Adani said in a statement.

The sale of FPO has achieved full registration.

—CNBC Ganesh Rao contributed to this article.


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