The Adani Group, a major conglomerate in India, experienced a significant decline in the value of its publicly traded companies on Thursday. This downturn follows the emergence of a new report that suggests the controlling family may have secretly invested in the company’s shares.
According to the report shared with reputable news outlets such as the Financial Times and the Guardian, the Organized Crime and Corruption Reporting Project alleges that an undisclosed offshore operation based in Mauritius artificially bolstered the shares of Adani Group between 2013 and 2018. Notably, these allegations echo those previously made by the short-selling research firm Hindenburg Research; however, Adani Group denies the validity of these claims.
Adani Group responded to the report by dismissing it as “a rehash of unsubstantiated allegations levelled in the Hindenburg report.” Despite their denial, Adani Enterprises (512599, -3.77%)—the flagship company of the group—suffered a share price decline of 4%. Additionally, other Adani companies, including Adani Ports (532921, -3.37%) and Adani Green Energy (541450, -4.39%), also witnessed losses.
This recent slump in stock prices compounds the financial challenges faced by Adani Group since the initial Hindenburg allegations were publicized. In total, the group has lost over $100 billion, according to calculations.
Controversial Allegations Surrounding Adani Group
The accusations leveled against Adani Group involve secretive investments and complex offshore operations based in Mauritius. These allegations are reminiscent of similar claims made by Hindenburg Research. While Adani Group firmly refutes these allegations, their stock prices have suffered as a result.
Impact on Adani Companies
The flagship company of Adani Group, Adani Enterprises, experienced a 4% decline in share prices. Adani Ports and Adani Green Energy, among other companies under the conglomerate, also faced losses. These developments contribute to the overall financial setback endured by Adani Group since the emergence of the Hindenburg allegations.
The Lingering Financial Toll
Since the initial allegations made by Hindenburg Research, Adani Group has faced a staggering loss of over $100 billion. As the controversy persists, the company must grapple with the impact on its reputation and market standing.
