The share prices of all nine listed companies of the Adani Group continued to tank on Friday, two days after a report by US-based company Hindenburg Research accused the conglomerate of stock manipulation and improper use of offshore tax havens.
With some of the stocks of the group falling by as much as 20%, the nine companies have lost more than Rs 4.20 lakh crore in market capitalisation since the markets closed on Tuesday, according to The Indian Express.
The sell-off had a broader impact on the Indian equity markets as investor wealth plummeted by more than Rs 12 lakh crore in just two trading sessions on Wednesday and Friday, the Business Standard reported. The markets were closed on Thursday on account of Republic Day.
In a report published on Wednesday, Hindenburg had claimed that key listed companies of the Adani Group are on a “precarious financial footing”. It also alleged that the conglomerate headed by India’s richest person, Gautam Adani, has amassed substantial debt by pledging overvalued shares.
The Adani stocks went on a spiral soon after markets opened for trading on Friday morning. At 3.25 pm, the group’s flagship company Adani Enterprises was down more than 18%. Adani Total Gas, Adani Green Energy and Adani Transmission were the worst performers as the stocks...