The Hindenburg report led to a significant stock market decline in the stocks of all the Adani Group firms, of which some of them droppped by as much as 83%.
A short-selling firm known as Hindenburg Research raised allegations of fraud and stock manipulation by the Adani group of companies around 17 months ago; on Saturday, August 10, 2024, the same firm published a new report accusing the chairperson of India stock market regulator SEBI, who headed the investigation, of a major conflict of interest involving him of “the Adani money siphoning scandal” of having unknown shares in some offshore firms that affect India through what it represented
An article which was referencing from a whisleblower by Hindenburg Research, accused SEBI chairperson Madhabi Puri Buch and Dhaval Buch, her husband, of holding shares in Mauritius and Bermuda funds via a complex structure. Hindenburg also provided a document in which Ms Hindenburg said that in 2017 only days before she was appointed a full-time SEBI member, Mr. Dhaval Buch, her husband, contacted a Mauritius fund administrator and said he wished to be the only person allowed to operate the accounts.
Also Read: Something Big Soon India: Hindenburg Research Hints at Another Big Revelation in India
Impact of Hindenburg report on Adani stocks
On January 24, 2023 the Hindenburg Research. US-based short-selling firm released a report accusing the Adani Group of doing fraud and manipulation of the Adani Group’s stocks. After the release of this report, there was a huge drop in Adani Group stocks, some of them dropped by as much as 83%.
Adani Enterprises
Later the promoters sold the stakes and prices decreased to ₹1,017 after fall by nearly 70 percent. To actually go back to its original value the stock even took a longer time, it touched the pre-report level on and only on May 23 2024. The price of shares of Adani Enterprises at the present is ₹3,188, which was 6% below the price they were before the revelation of the report on August 9, 2024.
Adani Wilmar
The stock fell by a further 52%, reducing to ₹ 132 from ₹ 275 per stock. However, it has more than 2 times since the research report came out.
Adani Ports
The ‘Hindenburg’ report led to a fall in the stock price to ₹395, which is a decline of around 48%. It needed 119 days to regain its status back to the level it was before the release of the report; it actually got back to that level on May 23, 2023. By August 9, 2024, the closing price of Adani Ports is ₹1,534 which is 101% up from the closing price of the time of preparing this report.
Click here to get the detailed analysis of stocks after this report.
Adani Solutions
Adani Energy Solutions however has made a slight recovery. The share price reduced to ₹ 632 down from ₹726 that means it is a decline of around 77%. It is now at ₹ 1,104, which is 60% below the level it was at before the release of the report. This means that after some recovery, the stock is highly affected by the first report.
Adani Green Energy
After the Hindenburg report, Adani Green Energy had a sharp decline from its price of ₹1,917 to ₹485, which is a decrease of about 75%. To be specific, after one year the stock came back to its usual price on February 7, 2024, and continued to the previous price that was before the report.
Adani Total Gas
The worst affected has been Adani Total Gas where the shares have come down from ₹3,892 to ₹650 which shows a stock loss of 83 %. Although there has been a recovery, the stock is currently at ₹870, which is almost 78% down from its pre-report level. This slow recovery process actually shows a picture of the many difficulties that have faced the company.
To know the overall changes in the stocks; have a look:
| Stock | Initial Price (₹) | Lowest Price Post-Report (₹) | Percentage Drop | Recovery Date | Current Price (₹) | Current Status |
|---|---|---|---|---|---|---|
| Adani Enterprises | – | ₹1,017 | 70% | May 23, 2024 | ₹3,188 | 6% below pre-report price as of Aug 9, 2024 |
| Adani Wilmar | ₹275 | ₹132 | 52% | Ongoing | – | More than doubled since the report |
| Adani Ports | – | ₹395 | 48% | May 23, 2023 | ₹1,534 | 101% up from report price as of Aug 9, 2024 |
| Adani Energy Solutions | ₹726 | ₹632 | 77% | Ongoing | ₹1,104 | 60% below pre-report price as of Aug 9, 2024 |
| Adani Green Energy | ₹1,917 | ₹485 | 75% | February 7, 2024 | – | Returned to pre-report price |
| Adani Total Gas | ₹3,892 | ₹650 | 83% | Ongoing | ₹870 | 78% below pre-report price as of Aug 9, 2024 |
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