Adani Group's 6 out of 10 shares down 5%: only Port share up 1.5%

Adani Group's 6 out of 10 shares are down 5%: only Port's share up 1.5%, Mauritius regulator found no wrongdoing in the company

Feb 14, 2023 - 15:25
Adani Group's 6 out of 10 shares down 5%: only Port share up 1.5%

Adani Group has appointed accountancy firm Grant Thornton for an independent audit of some of its companies to disprove the claims of American firm Hindenburg Research. In some media reports, this has been said by quoting two people familiar with the matter. On the other hand, the regulator of Mauritius said that the companies associated with Adani have not violated the law.
In his report, Hindenburg had made allegations like money laundering and accounting fraud on Adani Group. The Hindenburg report stated that Gautam Adani used Mauritius-based shell companies to manipulate the share prices of his companies.
There is a big fall in the stocks of Adani Group even today. Shares of 6 out of 10 companies are down 5%. These include Green Energy, Power, Total Gas, Transmission Wilmar and NDTV. Group's flagship company Enterprises is trading down around 4%. At the same time, there is a decline in cement companies Ambuja and ACC. However, shares of Adani Ports are trading up by around 0.39%.
Gautam Adani has come to the 24th position on the list of Global Billionaires. Adani's net worth fell to Rs 4.31 lakh crore ($52.2 billion) on February 14, according to the Forbes Real-Time Billionaires Index. His net worth as of Monday was Rs 4.49 lakh crore ($54.4 billion) and he was in the 23rd position. Before the Hindenburg report came on 24 January, he was number three on the list.
On January 24, Hindenburg Research published a report regarding the Adani Group. In the report, allegations ranging from money laundering to share manipulation were made about the group. After the report, there was a huge fall in the shares of the group. On Friday, i.e. February 3, the share of Adani Enterprises had reached close to Rs 1000. However, later it recovered.
Mauritius' regulator, the Financial Services Commission (FSC), said that 38 companies and 11 group funds linked to the Adani Group have not violated any law. FSC CEO Dhaneshwarnath Vikas Thakur has said this to Business Standard.
The central government has agreed to form an expert committee in the Adani Group-Hindenburg case. The committee will see whether there is a need to change the regulatory mechanism of the stock market. Solicitor General Tushar Mehta will give the names of the committee members in a sealed envelope to the court. The next hearing of the case will be on Friday.
The Supreme Court is hearing two Public Interest Litigations (PILs) related to the Hindenburg report against the Adani Group. The first hearing on the matter was conducted by Chief Justice DY Chandrachud and Justices PS Narasimha and JB Pardiwala on Friday (February 10).
During this, the court had asked the stock market regulator Security Exchange Board of India (SEBI) to give suggestions on what measures can be taken to protect investors in future. The court had asked Solicitor General Tushar Mehta, appearing for SEBI, to come with complete information on the matter on Monday.

Muskan Kumawat Journalist & Writer