Adani Group stocks continue to fall; Adani Total Gas tanks nearly 20 pc

PTI | New Delhi | Updated: 27-01-2023 13:03 IST | Created: 27-01-2023 12:51 IST
Adani Group stocks continue to fall; Adani Total Gas tanks nearly 20 pc
Representative Image Image Credit: ANI
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The Adani group stocks continued to remain under pressure on Friday, falling up to 20 percent in morning trade, after the US-based investment research firm Hindenburg Research made damaging allegations.

Shares of Adani Total Gas plummeted 19.65 percent, Adani Transmission tumbled 19 percent, Adani Green Energy plunged 15.50 percent and Adani Enterprises tanked 6.19 percent on the BSE.

Also, Adani Ports and Special Economic Zone fell 5.31 percent, Adani Wilmar dipped 5 percent and Adani Power declined 4.99 percent.

In the broader market, the 30-share BSE benchmark plunged by 1,106 points or 1.84 percent to trade at 59,098.37 in the afternoon session due to heavy selling in financials, banking, oil, and IT stocks.

Led by Tata Motors and Bajaj Auto, the BSE Auto index bucked the trend and was the only sectoral index to trade in the green in the morning session. Tata Motors was the lead gainer among Sensex shares rising by 5.14 percent as the automaker was back in the black in the December quarter after two years. Bajaj Auto jumped 6 percent while the BSE Auto index was marginally up at 29,619.19. The Adani Group on Thursday said it is examining legal options to take ''punitive action'' against Hindenburg Research for its ''reckless'' attempt to sabotage a mega share sale at the conglomerate's flagship firm - a statement that the US activist investor responded by saying it stands by its report that alleged ''brazen'' market manipulation and accounting fraud by the group.

''The maliciously mischievous, unresearched report published by Hindenburg Research on January 24, 2023, has adversely affected the Adani Group, our shareholders, and investors. The volatility in Indian stock markets created by the report is of great concern and has led to unwanted anguish for Indian citizens,'' Adani Group's lead head Jatin Jalundhwala said in a statement.

The report and its unsubstantiated contents were designed to have a deleterious effect on the share values of Adani Group companies as Hindenburg Research, by their own admission, is positioned to benefit from a slide in Adani shares, he said.

''We are deeply disturbed by this intentional and reckless attempt by a foreign entity to mislead the investor community and the general public, undermine the goodwill and reputation of the Adani Group and its leaders, and sabotage the FPO (Follow-on Public Offering) from Adani Enterprises,'' he said.

''We are evaluating the relevant provisions under US and Indian laws for remedial and punitive action against Hindenburg Research.'' Hindenburg, a US-based investment research firm that specializes in activist short-selling, said on Wednesday that its two-year investigation revealed that Adani Group has ''engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades''.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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