MUMBAI (Daily Pakistan Online) Shares of India’s Adani Enterprises plunged 20 percent on Friday as a scathing report by a US short seller rattled the group’s listed firms, with the report casting doubt on How investors will respond to the company’s record $2.45 billion secondary offering.
Seven listed companies of the Adani Group, controlled by one of the world’s richest men, Gautam Adani, have lost a total of $48 billion in market capitalization since Wednesday, according to Reuters news agency. US bonds of Adani firms are also falling. Hindenburg Research in a report dated January 24 had mentioned the debts and tax havens of the Adani Group after which there were concerns about the Adani Group.
India’s capital markets regulator is studying the Hindenburg report and may use it to help in its ongoing probe into Adani Group’s offshore fund holdings, the sources said. In this regard, the Indian regulator and Adani’s spokesperson did not immediately comment. Adani Group has dismissed Hindenburg’s report as baseless and said it is considering taking legal action against the New York-based firm. It did not immediately respond to a request for comment on the regulator’s move.