Adani Group stocks crashed up to 7 per cent on Monday morning after a latest report by US-based short seller Hindenburg accused SEBI chief Madhabi Puri Buch and her husband Dhaval Buch of having held stakes in obscure offshore entities used to siphon money from Adani Group companies.
According to Hindenburg’s claims, these funds were used by Gautam Adani’s brother Vinod Adani to acquire and trade significant shares in the Adani Group.
Shares of flagship Adani Group company, Adani Enterprises, fell over 3 per cent to hit a low of Rs 3,018.25. Adani Ports and SEZ Ltd, largest private port operator in the country, fell around 2 per cent to Rs 1,457.35 in early trade.
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Adani Power, Adani Total Gas, Adani Green Energy, Adani Energy Solutions, Adani Wilmar all fell up to 4 per cent on Monday.
Investors lost around Rs 53,000 crore with the combined market capitalisation of 10 Adani stocks falling to Rs 16.7 lakh crore.
Shares of Adani Green Energy were among the worst hit as it crashed around 7 per cent to hit the day’s low at Rs 1,656 on BSE before recovering some of the losses later on.
At 10:35 AM, Adani Ports was trading at Rs 1,505.75, down by 31.70 points or 2.07 per cent.
In response to Hindenburg’s allegations, Buch has strongly denied all allegations terming them as “baseless” and “devoid of any truth”.
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SEBI released a statement saying that Buch had made relevant disclosures required in terms of holding of securities and their transfers from time to time. "Chairperson has also recused herself in matters involving potential conflicts of interest," the statement added.
According to stock market experts, the Hindenburg report will not have much impact on the stock prices.
It appears that this “revelation” is unlikely to impact the market meaningfully. The buy on dips strategy which has been working well in this bull run is likely to work again," said VK Vijayakumar, chief investment strategist at Geojit Financial Services.
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