Hindenburg row: From MSCI scrutiny to cancelled FPO, 7 major setbacks faced by Adani Group
By Team Newsable | First Published Feb 2, 2023, 1:15 PM ISTBillionaire Gautam Adani is the founder of Adani Group, the largest port operator in India. Adani Group's interests span infrastructure, commodities, power generation and transmission and real estate.
A week after Hindenburg Research released its report on Adani Group, the stocks have been facing steep losses which raised concerns over the group's financials which the Group dismissed as 'baseless'.
Billionaire Gautam Adani is the founder of Adani Group, the largest port operator in India. Adani Group's interests span infrastructure, commodities, power generation and transmission and real estate.
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Also read: Stocks from Adani Enterprises keep Nifty in red; Sensex trading flat
The Adani Group has been diversifying its business interests and last year bought cement firms ACC and Ambuja Cements from Switzerland's Holcim for $10.5 billion.
Here are 7 setbacks for Billionaire Gautam Adani-led Adani Group in a week:
- On January 24, Hindenburg Research accused Adani Group of committing "a brazen stock manipulation and accounting fraud scheme over the course of decades".
- The report from the Hindenburg sparked a huge sell-off in shares in Adani's firms, wiping out more than $100 billion in market value as of Thursday.
- On Saturday, index provider MSCI said it is seeking feedback on Adani Group and associated securities after the Hindenburg report.
- On Sunday, the Adani Group issued a 413-page statement that rebutted all of Hindenburg's claims, calling it an attack on the growth story and ambition of India, after which Hindenburg said Adani's statement failed to answer most of the questions raised in its report.
- Credit Suisse Group AG has stopped accepting bonds of Gautam Adani's group of companies as collateral for margin loans to its private banking clients
- Bonds of the Indian billionaire's flagship firm plunged to distressed levels in US trading
- Reserve Bank of India (RBI) has asked lenders for details of their exposure to the Adani group
Also read: Adani pulls the plug on Rs 20,000 crore FPO, cites investor interest
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