Adani Group Stocks Plunge Amid Hindenburg Allegations
The market value of Adani Group firms decreased by around ₹53,000 crore due to a sharp reduction in share prices.
Shares of Adani Group companies experienced a significant decline, with losses of up to 7%, leading to an estimated ₹53,000 crore loss in market capitalization. The combined market capitalization of the 10 Adani stocks fell to ₹16.7 lakh crore.
This sharp downturn followed allegations by U.S. short-seller Hindenburg Research, which accused SEBI chief Madhabi Puri Buch and her husband Dhaval Buch of holding stakes in offshore funds based in Bermuda and Mauritius. Vinod Adani, brother of Gautam Adani, allegedly used these funds to amass and trade large positions in Adani Group shares.
Adani Green Energy Suffers the Most:
Among the Adani Group stocks, Adani Green Energy was the worst hit, with its shares plummeting by 7% to a low of ₹1,656 on the BSE.
Performance of Other Adani Stocks:
- Adani Total Gas: Shares declined by around 5%.
- Adani Power: Shares dropped by 4%.
- Adani Wilmar, Adani Energy Solutions, and Adani Enterprises: All saw decreases of about 3%.
- Adani Ports: A Nifty stock, Adani Ports shares were down by approximately 2%.
Hindenburg Allegations and SEBI’s Response:
Hindenburg’s report questioned SEBI’s ability to act as an impartial regulator in the Adani matter, casting doubt on whether it could be trusted as an objective judge.
In response, SEBI issued a statement denying the allegations and clarifying that its chief, Madhabi Puri Buch, had made all required disclosures regarding her securities holdings and their transfers. SEBI further noted that Buch had recused herself from matters involving potential conflicts of interest.
SEBI also provided an update on its ongoing investigations, stating that of the 24 matters under scrutiny, one more investigation was completed in March 2024.
The regulator detailed its extensive efforts, including issuing over 100 summonses, sending around 1,100 letters and emails for information, and seeking assistance from domestic and foreign regulators. As part of the investigation, SEBI examined more than 300 documents comprising roughly 12,000 pages.
