News from the Financial Associated Press on January 27 (edited by Zhou Ziyi)This week, India’s Adani Group lost more than $42 billion in market value on a short-selling report from an agency. On Friday, the stock’s sell-off intensified.
On Tuesday local time, the well-known American short-selling agency Hindenburg Research (Hindenburg Research) released a short-selling report on the Adani Group on its official website, accusing the group of huge fraud and its financial situation is in jeopardy.
Now, the group’s founder, India’s richest man, Gautam Adani, is pushing ahead with a 200 billion rupiah ($2.4 billion) stock offering, aiming to prove the company can attract global investors.
This is the largest secondary offering ever in India, but the sell-off is undoubtedly a blow to Adani Group.
Huge loss
This huge industrial conglomerate has expanded rapidly over the past few years, and its valuation has also soared rapidly. The stock is one of the best stocks in Asia in 2022.
Adani’s stock has soared 2,500% in the past five years, even surpassing Tesla, making founder Adani the richest man in India in one fell swoop and joining billionaires Bernard Arnault, Elon Musk and Jeff Bezos eponymous.
On Friday, as of press time, the stock of Adani Enterprises, a listed subsidiary of Adani Group, fell more than 18% to a low of 2,766.2 rupees per share.
Elsewhere, Adani Green Energy, the group’s other subsidiaries, fell 20.1 percent and Adani Transmission fell 19.8 percent. The declines cost Adani Group shares nearly 3.5 trillion rupiah ($42.6 billion) in total market value.
Certainly, Adani Group has denied the allegations, calling the report a “malicious combination of selectively misinformation and baseless allegations” designed to damage Adani Group’s reputation and hurt investor demand for its shares.
Adani said it was considering legal action against Hindenburg. Hindenburg then responded that he would be “welcome anytime”.
On Thursday, billionaire hedge fund manager Bill Ackman also called Hindenburg’s report “highly credible” and called the study “very strong.”