Adani Group stocks tank ~10% owing to regulatory scrutiny in the US

23 Jun 2023 , 01:20 PM

Adani Group stocks fell up to 10% in Friday’s trade following a Bloomberg report claiming that the US authorities are investigating what representations Adani Group made to its American investors following Hindenburg Research’s damning report accusing the company of using offshore companies to secretly manipulate its share prices.

In the morning session, Adani Enterprises’ stock fell as much as 10% at Rs 2,162.80 apiece on BSE. Adani Ports, Adani Power, and Adani Transmission shares slipped more than 5%. On the other hand, Adani Total Gas, Adani Green Energy, and Adani Wilmar tanked over 3%.

As per the report of Bloomberg, the office of the US Attorney in Brooklyn, New York has enquired in recent months to institutional investors with significant holdings in the India conglomerate, according to a source familiar with the inquiries.

The requests for information focused on what Adani Group told those investors. According to other sources, the Securities and Exchange Commission is also conducting an investigation.

Requests for information from US prosecutors do not always imply that criminal or civil proceedings will be filed, as law enforcement agencies frequently open inquiries that do not result in action, according to the report.

Adani Group has already cleared the allegations, stating that Hindenburg report ‘nothing short of a calculated securities fraud.’

However, until the afternoon session, group erased some losses. Adani Enterprises was trading 6.51% lower. Adani Ports and Adani Power were trading 4% lower. 

Reportedly, Adani Group companies wiped off Rs 52,000 crore following the news of US probe.

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