Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Adani slides on report of U.S. regulatory probe over Hindenburg

Published 23/06/2023, 06:44
Updated 23/06/2023, 06:44
© Reuters

Investing.com -- Shares of companies under Indian conglomerate Adani Group fell sharply on Friday after a report suggested that the firm was facing regulatory scrutiny in the U.S. over its response to a short seller report earlier this year.

Adani Enterprises Ltd (NS:ADEL), the flagship firm under the ports to power conglomerate, fell nearly 9%, while Adani Ports and Special Economic Zone Ltd (NS:APSE) lost 4.9%. Adani Power Ltd (NS:ADAN) and Adani Transmission Ltd (NS:ADAI) fell 5.1% and 7.9%, respectively.

Bloomberg reported that the U.S. Attorney’s Office in Brooklyn, New York, had sent inquiries to large U.S. stakeholders in Adani over how the firm responded to allegations raised by Hindenburg Research in a short seller report released in January.

The short seller report had also attracted a probe from the U.S. Securities and Exchange Commission over representations made to American shareholders, the Bloomberg report said.

In addition to the Bloomberg report, major auditor Deloitte had also recently raised concerns over certain suspicious transactions by Adani Ports, citing some relevance to the allegations raised by Hindenburg.

The news sparked renewed concerns over the allegations raised by the Hindenburg report, which had accused Adani of engaging in improper use of offshore tax havens and stock price manipulation.

Hindenburg said it had taken a short position in the conglomerate through bonds and exchange-traded funds, and also raised concerns over Adani’s extremely high debt levels.

The report had triggered a $100 billion rout in Adani’s value, although shares of the conglomerate have since recovered a bulk of the losses. 

An investigation by the Securities and Exchange Board of India had “drawn a blank” in May, with the probe set to conclude by mid-August. A Supreme Court-appointed panel had also said that its investigation into the firm could be a “journey without a destination.” 

Losses in Adani pulled broader Indian markets lower on Friday, with the Nifty 50 falling 0.4%.

 

Latest comments

h
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.