The Crossbill Team
Investors have incurred significant losses amounting to Rs 7 lakh crore ($82.9 billion) across ten Adani Group companies since January 2023, following allegations of "brazen stock manipulation and accounting fraud" by US-based short-seller Hindenburg Research, according to a report in The Indian Express.
These allegations were compounded recently by a Rs 2,200 crore bribery charge linked to energy contracts, as surfaced in US court filings, the report said.
According to exchange data, the combined market capitalisation of the ten listed Adani companies dropped from Rs 19.24 lakh crore ($227.78 billion) on January 23, 2023 — the day before the Hindenburg report — to Rs 12.24 lakh crore ($144.87 billion) by November 21, 2024, after the bribery charges were revealed. This marked a sharp decline in investor wealth, with Rs 2.22 lakh crore wiped out on November 21 alone, as Adani stocks plummeted by up to 23% in a single day.
The report noted that the fallout from the Hindenburg report in early 2023 had already caused a month-long market downturn, reducing Adani companies' market capitalisation from $140.1 billion to $80.67 billion by February 27. However, a recovery followed, driven by a Rs 15,000 crore investment from GQG Partners, pushing the valuation to a peak of $229.87 billion (Rs 19.42 lakh crore) by June 3, 2024.
Fresh controversies emerged later in the year, with Hindenburg alleging, via "whistleblower documents," that SEBI Chairperson Madhabi Puri Buch and her husband, Dhaval Buch, held stakes in offshore funds tied to the alleged Adani money-siphoning scandal.
Both Buchs denied the allegations, and SEBI stated that it has robust internal mechanisms to address conflicts of interest, including a disclosure framework and provisions for recusal.
By November 19, 2024, Adani companies' market capitalisation had dropped further to Rs 14.49 lakh crore amid broader market weakness, which saw the Sensex fall by 8,800 points since September 27.
Several Adani Group companies continue to be significant holdings for institutional investors, including LIC, mutual funds, and insurance firms. In contrast, retail investors hold less than 10% in most of the Adani companies, with the exception of Adani Wilmar. Their stakes include 2.78% in Adani Enterprises, 9.2% in ACC, 5.46% in Adani Total Gas, 4.8% in Adani Power, and 4.6% in Ambuja Cement.
These allegations were compounded recently by a Rs 2,200 crore bribery charge linked to energy contracts, as surfaced in US court filings, the report said.
According to exchange data, the combined market capitalisation of the ten listed Adani companies dropped from Rs 19.24 lakh crore ($227.78 billion) on January 23, 2023 — the day before the Hindenburg report — to Rs 12.24 lakh crore ($144.87 billion) by November 21, 2024, after the bribery charges were revealed. This marked a sharp decline in investor wealth, with Rs 2.22 lakh crore wiped out on November 21 alone, as Adani stocks plummeted by up to 23% in a single day.
The report noted that the fallout from the Hindenburg report in early 2023 had already caused a month-long market downturn, reducing Adani companies' market capitalisation from $140.1 billion to $80.67 billion by February 27. However, a recovery followed, driven by a Rs 15,000 crore investment from GQG Partners, pushing the valuation to a peak of $229.87 billion (Rs 19.42 lakh crore) by June 3, 2024.
Fresh controversies emerged later in the year, with Hindenburg alleging, via "whistleblower documents," that SEBI Chairperson Madhabi Puri Buch and her husband, Dhaval Buch, held stakes in offshore funds tied to the alleged Adani money-siphoning scandal.
Both Buchs denied the allegations, and SEBI stated that it has robust internal mechanisms to address conflicts of interest, including a disclosure framework and provisions for recusal.
By November 19, 2024, Adani companies' market capitalisation had dropped further to Rs 14.49 lakh crore amid broader market weakness, which saw the Sensex fall by 8,800 points since September 27.
Several Adani Group companies continue to be significant holdings for institutional investors, including LIC, mutual funds, and insurance firms. In contrast, retail investors hold less than 10% in most of the Adani companies, with the exception of Adani Wilmar. Their stakes include 2.78% in Adani Enterprises, 9.2% in ACC, 5.46% in Adani Total Gas, 4.8% in Adani Power, and 4.6% in Ambuja Cement.
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