Adani Group stocks experienced a sharp decline on Monday, with some shares dropping as much as 17 per cent, following new allegations from the US-based short seller Hindenburg Research. The firm claimed that whistleblower documents implicated SEBI Chairperson Madhabi Puri Buch in offshore entities associated with the alleged “Adani money siphoning scandal.”
The Adani Group swiftly denied the accusations, labelling them as “manipulative,” “malicious,” and “mischievous.” Buch and her husband also dismissed the claims, describing them as baseless and a deliberate attempt at character assassination.
The market reacted quickly, with several Adani stocks suffering significant losses. Adani Power fell 10.94 per cent to Rs 619 on the Bombay Stock Exchange or BSE, while Adani Enterprises slid 5.27 per cent to Rs 3,018.55. Adani Energy Solutions saw the biggest drop, plunging 17.06 per cent to Rs 915.70 before partially recovering. Other Adani stocks, such as Adani Green Energy, Adani Total Gas, Adani Wilmar, and Adani Ports, also registered notable declines.
Hindenburg’s report suggested links between the IPE Plus Fund, where Buch had investments, and the Adani Group. The report highlighted Anil Ahuja, Founder and Chief Investment Officer of the IPE Plus Fund, who previously served as a director at Adani Power and Adani Enterprises. The Adani Group clarified that Ahuja’s role as a nominee director was on behalf of the 3i investment fund, emphasizing no direct commercial ties with the individuals involved.
Analysts predict that the market impact might be short-lived. Vinit Bolinjkar of Ventura Securities argued that the allegations are largely a rehash of previous claims and expects Adani stocks to recover. Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, shared this view, stating that unless these allegations significantly affect the Adani Group’s earnings, the stock prices are likely to bounce back.
While these new allegations have caused a short-term stir in the market, the long-term effects on the Adani Group remain to be seen as the situation unfolds.
