Investors in Adani Group companies lost a whopping ₹85,000 crore in wealth after US activist investor Hindenburg Research released a lengthy report that alleged fraud by the Ahmedabad-based group.
As the news of the report spread on Twitter and WhatsApp groups and television channels, the shares of Adani Group firms began to plummet, leaving the group scrambling for damage control as it furiously denied the allegations as "baseless and discredited".
Market sentiments were downcast on Wednesday, but while the BSE 30-share index fell by 1.27%, the nine Adani group companies' market capitalization collectively lost by a wider 4.5%.
Later in a YouTube video, with the national tricolour in the background, the Adani Group's chief financial officer, Jugeshinder Singh, responded with his trademark aggressive mien: "We are shocked that Hindenburg Research has published a report on 24 January without making any attempt to contact us or verify the factual matrix," Singh said. "The report is a malicious combination of selective misinformation and stale, baseless and discredited allegations that have been tested and rejected by India's highest courts," he riposted.
So far, Hindenburg's most prominent short attack was the one that targeted Nikola, in which it accused the electric-vehicle maker of "an ocean of lies." Nikola, which at one point had a $34 billion market value, is now worth $1.3 billion, and a US jury convicted founder Trevor Milton of defrauding investors in October.
Hindenburg first researches a target firm, betting its stock will fall, and then promotes its findings publicly through social media. The group positions itself as a watchdog safeguarding investors from corporate misconduct, while the targeted firms typically accuse it of manipulating the market.
Esta historia es de la edición January 26, 2023 de Mint Mumbai.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 8500 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición January 26, 2023 de Mint Mumbai.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 8500 revistas y periódicos.
Ya eres suscriptor? Conectar
Think Tesla Is In Trouble? Pity Even More Its Wannabe EV Rivals
The combined market value of six prominent wannabes hit 400bn in 2021, but today they are worth 65bn
Has The Growth Of Our Economy Translated Into Domestic Jobs?
While the covid shock and other setbacks got in the way, data indicates that employment in India is on a firm recovery path
Financial Sector Reforms Plan To Be Unveiled Post Elections
The govt will cut its stake in five PSBs this fiscal to comply with Sebi’s listing guidelines
Generative AI Is Not Ubiquitous In The Business World-Not Yet
While some AI tools racked up users, some firms are proceeding with caution, or not at all
Wipro’s CEO switch was not about its share price
Shareholder value data does not explain the firm's change on top. In a flux-filled field like infotech, business performance counts for more and Wipro's challenge still seems quite steep
How not to blow a major chunk of your travel budget on visas
Rejection of visas can impact your travel costs, especially when you have to cancel flight and hotel bookings
Wheat output at 106 mt to fall short of govt estimate: Survey
This decline in output comes at a time India confronts rising food inflation
Ghosh won't stay on Bandhan Bank board
Board may even look at appointing an interim CEO post his tenure
Biocon leads Indian charge into weight loss drugs as patents lapse
Biocon Ltd. is pivoting to anti-obesity therapies as patents for the blockbuster medications start to expire, unleashing a wave of generic supply for the market that's expected to touch $100 billion by 2030.
Aakash names Deepak Mehrotra as managing director and CEO
Aakash Educational Services Ltd (AESL), a subA sidiary of embattled startup Byju's, has appointed Deepak Mehrotra as its managing director and chief executive officer.