Indian conglomerate Adani Groups has been accused of account manipulation/fraud by Hindenburg Research after its shares plummeted.
According to Hindenburg Research, Adani Group companies, engaged in brazen stock manipulation and accounting fraud scheme over decades.
“Even if you ignore the results of our investigation, Adani Group’s core listed companies have 85% downside merely on a fundamental basis owing to sky-high valuations.” Hindenburg Research reported.
Adani Group’s Reaction
The Adani Group has however reacted to the allegation. In a statement by the group’s Chief Financial Officer, Jugeshinder Singh, they expressed their shock at the allegation. According to them, it is just a malicious combination of selective misinformation which is baseless.
He also noted that the timing of the report, coming days ahead of a share offer by the group was to ruin their reputation and damage demand for the upcoming offering, adding that the group has always complied with the laws.
The statement added that the company was never contacted by Hindenburg and criticizes the timing of the report’s publication to undermine the Adani Group’s reputation, which they believe is an avenue to damage the upcoming Follow-on Public Offering from Adani Enterprises.
In the meantime, the Shares in seven listen Adani Group companies were down 4.6% on average in afternoon trading in Mumbai, with those in flagship business Adani Enterprises falling as much as 3.7%.
The declines brought the combined loss in market capitalization for Adani Group stocks to about Rs762 billion ($9.4 billion).