Adani stocks get "Hindenburged!"

The Adani group is facing some rough weather on the bourses ever since the report by Hindenburg Research came out, claiming that the group ad engaged in stock manipulation and accounting fraud scheme over the course of last few decades. What makes the report contentious is that timing – the report was released on Wednesday, just a day before (Thursday being a holiday Adani Enterprises’s Rs 20,000-crore follow-on public offer opened today for subscription.

The talk on the Street is that Hindenburg is a short-seller and that is the guiding principle behind this report.

The group CFO called this report, “malicious combination of selective misinformation and stale, baseless and discredited allegations that have been tested and rejected by India’s highest courts.” The group has said that this report was devoid of facts.

The release of the report has not only led to a crash in the prices of all listed Adani stocks but also the entire market as a whole. Banking stocks too have taken beating on fears of the impact.

All 10 listed stocks of Adani are down in the red, worst hit being Adani Total, followed by Adani Transmission, Adani Green, Adani Enterprises, Adani Ports, ACC and Ambuja Cement.

Adani Wilmar, Adani Power and NDTV hit the 5% LC.

Message from our Editor, Mr.SP Tulsian – stay invested, don’t panic and do not let those with vested interests win.