It was a bad day for shares of Adani Group companies on Monday; they lost about $2.4 billion in market value. A U.S. short-seller called Hindenburg Research made claims against the Securities and Exchange Board of India (SEBI) and its chair, Madhabi Puri Buch, which led to this huge drop. The report, which was released by Hindenburg on Saturday, said that Buch had invested in foreign funds that the Adani Group was also said to have used. Investor trust has dropped sharply because of these claims. They have raised new worries about India’s corporate governance and regulatory oversight.
The Adani Group is already getting a lot of attention because of claims made by the same short-seller in January, which are backed up by Hindenburg’s report. The earlier report said that the conglomerate was manipulating stocks and lying about its finances. This caused a huge market response that destroyed billions of dollars in value. The new accusations against SEBI and Buch have made things even worse for the group, raising more questions about how it does business and how it interacts with Indian authorities.
Adani Group’s stocks plummet as Hindenburg’s latest report raises new concerns.
Madhabi Puri Buch quickly replied to the story and strongly denied the claims. In a statement made on Sunday, she called the accusations “baseless” and said that she has always been honest and done the right thing. Buch became chair of SEBI in 2022 and is known for being very strict about following the rules. She has been a big part of putting in place a number of changes that have made the Indian financial markets more open.
Even though Buch had a strong response, the market reacted quickly and harshly. On Monday, shares of Adani Enterprises, the group’s main company, dropped almost 5%. Shares of other Adani Group companies also dropped sharply. The market’s reaction shows that investors are becoming more worried about how these claims might affect the group’s operations and its future ability to raise money.
There are also questions about when Hindenburg’s report came out. Some market experts think that the short-seller is trying to make money off of the fact that things are already very unstable with the Adani Group. On the other hand, the accusations against a top regulatory official have made things even more complicated, making it hard for the group to win back investors in the short run.
$2.4 billion wiped out: Adani Group reels from new allegations against SEBI chief.
The ongoing monitoring has caused the Adani Group’s market value to change a lot over the last few months. The group has interests in many areas, such as energy, infrastructure, and logistics. Even though the group has always denied any wrongdoing and has taken legal action against Hindenburg, these stories have had a huge effect on the price of its stock. The new accusations have made people even less trusting of the conglomerate, which makes people worry about its long-term future and its relationship with Indian government regulators.
As things continue to go on, buyers will be keeping a close eye out for any new information. How well the Adani Group handles this problem and restores trust will be very important in determining its future. So far, one of India’s biggest conglomerates is dealing with the effects of yet another bad report by Hindenburg, which has cast a huge shadow over it.