Shares of Adani Group companies plunged on Friday after a report said that United States authorities are looking into the representations that the conglomerate made to its American investors in the wake of the allegations of stock manipulation levelled by Hindenburg Research.
The US Attorney’s Office in Brooklyn has sent inquiries to investors with large stakes in Adani Group, according to Bloomberg. The US Securities and Exchange Commission is also conducting a similar investigation, Bloomberg added, citing two people familiar with the matter.
An Adani Group spokesperson said that the conglomerate was not aware of inquiries sent to its investors.
But as the trading ended on Friday, Adani Group flagship company Adani Enterprises settled at 6.79%, or 162.80 points, lower at 2233.10 at the Bombay Stock Exchange. Adani Ports tumbled 4.16%, Adani Power dropped 5.61%, Adani Transmission dipped 6.38%, Adani Green Energy tanked 1.50%, Adani Total Gas declined 3.21%, Adani Wilmar plunged 3.42% at the BSE.
Shares of NDTV were down by 3.46%.
The drop has led to the erosion of about Rs 52,000 crore in market capitalisation of the Adani Group – the highest in four months, reported Mint. On February 9, the conglomerate had lost Rs 59,538 crore market capitalisation due to the sell-off triggered by Hindenburg Research report.
In January, Hindenburg Research alleged that billionaire Gautam Adani’s conglomerate was pulling off the “largest con in corporate history”.
The American company claimed that Adani Group has been involved in accounting fraud, improper use of tax havens and money laundering. The Adani Group rejected these allegations but the report still pummeled the stocks of the conglomerate’s listed companies.