December 26, 2024

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Adani’s shares have fallen further as she considers legal action against the Hindenburg

Adani’s shares have fallen further as she considers legal action against the Hindenburg

Chairman and Founder of the Adani Group, Gautam Adani, at the News18 Rising India Summit on February 25, 2019, in New Delhi, India. Since becoming a billionaire in 2008, Adani is now one of the richest people in the world, with a net worth of $113 billion, according to the Bloomberg Billionaires Index.

Hindustan Times | Hindustan Times | Getty Images

Shares of Adani Group companies extended sharp losses for the second consecutive trading session in India, after the short-selling company Hindenburg made her stand short in conglomerate firms earlier this week.

In a lengthy report released earlier this week, the Hindenburg detailed several allegations against the conglomerate companies, saying the group “engaged in scandalous equity manipulation and accounting fraud scheme over the course of decades.”

Al-Adani dismissed these allegations in two separate statements, calling the short seller’s claims “a deliberate and reckless attempt by a foreign entity to mislead the investor community and the general public,” according to a press release.

“We are evaluating relevant provisions under US and Indian laws to take corrective and punitive action against Hidenburg Research,” said Jatin Jalondwala, Adani Group Chief Legal Officer.

shares listed in Mumbai Adani projects It fell more than 9% in the trading session in India on Friday. Bring me back the transmission decreased 19.47% Adani for green energy fall by 19.89% and Adani Power lost 5%. Adeni portThe share price also fell by 13.8%.

The moves follow Wednesday’s losses after the initial release of the Hindenburg report. The Indian stock market closed on Thursday.

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The short-selling company doubled down on its initial position after Adani’s responses, asserting that the group had not answered any of the questions posed, and adding that any lawsuits against the Hindenburg would be “without merit”.

“If El Adani is serious, he should also file a case in the US where we operate. We have a long list of documents that we require in the legal discovery process,” she said.

“We stand by our report fully and believe that any legal action taken against us would be without merit,” she said.

Billionaire investor and CEO of Pershing Square Capital Management Bill Ackman expressed his support for the short selling company in a tweet posted shortly before the India market opened.

“I found the Hindenburg Report to be very reliable and very well researched,” he wrote, adding that the Adani Group’s response “speaks a lot.”

He added, “I beware of the client.”

$2.5 billion stock offering

Stock picks and investment trends from CNBC Pro:

Reuters mentioned That the primary investors, and the institutions to which shares were allocated at a fixed price before opening the offering to the public, made offers on shares worth 90 billion rupees and that the Malaysian Maybank allocated more than 34% of the shares reserved to institutional investors, while the Abu Dhabi Investment Authority share rose 2.56% .

Gautam Adani: The Rise and Rise of Asia's Richest Person

Since becoming a billionaire in 2008, Adani is now one of the… The richest people in the worldwith a fortune of $ 113 billion, according to Bloomberg Billionaires Index. The index showed that his net worth has fallen by about $7 billion in the year so far.

In August last year, the company sought to acquire Obsession From Indian media group NDTV, which said in a filing that the move was “carried out without any consent” from its founders.