Adani Group Shares Drop Amid New Allegations: What You Need to Know

Adani Group Shares: On Monday morning, Adani Group's stock prices fell by as much as 17% after new allegations emerged from Hindenburg Research, a US-based short-selling firm. Hindenburg's report claimed that Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch had links to offshore entities involved in the so-called "Adani money siphoning scandal."

Adani Group Responds

In reaction to these claims, the Adani Group strongly denied any wrongdoing, calling the allegations "malicious," "mischievous," and "manipulative." SEBI Chairperson Madhabi Buch and her husband have labeled the accusations as "baseless" and a form of "character assassination."

Impact on Stock Prices

The allegations led to a significant drop in Adani Group's stock prices:

• Adani Power fell by 10.94%, reaching Rs 619 on the Bombay Stock Exchange (BSE).
• Adani Enterprises decreased by 5.27%, hitting Rs 3,018.55.
• Adani Energy Solutions saw the biggest drop, plunging 17.06% to Rs 915.70 before partially recovering.
• Adani Green Energy dropped 6.96% to Rs 1,656.05.
• Adani Total Gas tumbled 13.39% to Rs 753 but later recovered to Rs 829.85, still down 4.55%.
• Other stocks like Adani Wilmar and Adani Ports also saw declines.

Details of the Allegations

Hindenburg's report pointed out that the IPE Plus Fund, in which SEBI Chairperson Madhabi Buch had investments, was connected to the Adani Group. Anil Ahuja, founder of the IPE Plus Fund, had previously been a director at Adani Enterprises and Adani Power.

The Adani Group clarified that Ahuja's role was as a nominee director for the 3i investment fund and that there was no direct commercial relationship with the individuals mentioned. They also stated that the fund’s investment in Adani securities was redeemed in 2018, and the fund did not invest in Adani group stocks.

Market Reactions and Expert Opinions

According to Vinit Bolinjkar from Ventura Securities, the new Hindenburg allegations are not severe and seem to be a repetition of previous claims. He predicts a short-term impact on Adani stocks but expects a recovery soon.

Also read: Hindenburg's Short Selling Playbook: What You Need to Know and Recent Updates

Similarly, Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, believes that the market reaction will be temporary. He expects stock prices to recover if the allegations do not significantly affect Adani's earnings, noting that stock prices are largely driven by earnings performance.