After losing up to 8 per cent on Wednesday following the release of a report on the group by Hindenburg Research, the shares of all 9 listed Adani Group companies came under huge selling pressure on Friday and the group had lost nearly 3.4 lakh crore in market capitalisations by Friday afternoon. The 18.5 per cent decline in aggregate market cap decline on Friday has taken the overall decline in group market capitalisation by over Rs 4.2 lakh crore since Tuesday’s closing.
At 3 PM on Friday, atleast 4 of the 9 listed Adani Group stocks had hit the lower circuit. While shares of Adani Transmission, Adani and Adani Total Gas were down 20 per cent each at 3 PM, Adani Green Energy and Adani Enterprises were down 19.9 and 19.3 percent respectively. Adani Ports (-17.7%), Ambuja Cements (-17.3%) and ACC (-14.3%) also fell sharply during the day. Adani Power and Adani Wilmar shares were also trading at the lower circuit and were down 5 per cent each.
The shares fell on Friday even as the Group on Thursday said that it is planning to sue Hindenburg Research which came out with a “maliciously mischievous” report alleging “brazen stock manipulation and accounting fraud scheme” over the course of decades by the group.
“We are evaluating the relevant provisions under US and Indian laws for remedial and punitive action against Hindenburg Research,” Jatin Jalundhwala, Group Head – Legal, Adani, said in a statement.
Our response to Adani: pic.twitter.com/6NcFKR8gEL
— Hindenburg Research (@HindenburgRes) January 26, 2023
However, responding to the Adani group’s legal threat, Hindenburg Research said it stands by its report and believes that any legal action taken against it would be ‘meritless’.
“If Adani is serious, it should also file suit in the US where we operate. We have a long list of documents we would demand in a legal discovery process,” Hindenburg Research said on Twitter.
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