Adani Group stocks tumble up to 17% following Hindenburg's allegations
Adani Group's shares experienced a significant drop in early trade on Monday, with Adani Energy leading the decline by 17%. This market reaction was triggered by allegations from US short-seller Hindenburg Research. The firm claimed that SEBI chairperson Madhabi Puri Buch and her husband had undisclosed investments in offshore funds located in Bermuda and Mauritius. These funds are reportedly the same entities used by Vinod Adani, Gautam Adani's elder brother, for alleged round-tripping of funds and stock price manipulation.
Other Adani Group stocks also witness significant declines
The allegations also impacted other Adani Group stocks. Adani Total Gas saw a decrease of 13.39%, while NDTV's shares dropped by 11%. Additionally, Adani Power's shares fell by 10.94% on the BSE during early trade. Other affected stocks included Adani Green Energy, Adani Wilmar, and Adani Enterprises as well as non-Adani entities like Ambuja Cements and ACC that experienced substantial declines in their share prices.
SEBI chairperson and her husband deny allegations
In response to Hindenburg's allegations, Buch and her husband issued a statement denying any wrongdoing. They described the accusations as an attack on SEBI's credibility and an attempt at "character assassination." The couple clarified that their investments, duly disclosed to SEBI, were made in 2015, before Buch's appointment as a full-time member of SEBI in 2017 and her subsequent promotion to chairperson in March 2022. They also stated that these funds became "dormant" upon her appointment at SEBI.
Hindenburg Research maintains conflict of interest
Hindenburg Research has maintained its stance, arguing that there is a significant conflict of interest. The short-seller asserts that SEBI was responsible for investigating investment funds related to the Adani case, which included funds in which Buch had personal investments. This claim continues to fuel the ongoing controversy surrounding the Adani Group stocks and their market performance.
Adani Group stocks partially recover later on Monday
Despite the initial slump, Adani Group stocks showed signs of recovery later in the day. Shares of companies like Adani Enterprises, Adani Ports, and Adani Power that had lost up to 5-6% in early morning trade were down by just 3% by 12:30 pm. Benchmark indices Nifty 50 and BSE Sensex also managed to recover all losses seen during opening hours and turned green in afternoon trade, indicating a partial rebound from the earlier market downturn.
