© Reuters. Adani logo and decreasing stock graph is seen in this illustration taken January 31, 2023. REUTERS/Dado Ruvic/Illustration
BENGALURU (Reuters) – Most Adani Group stocks dropped on Wednesday, extending losses after a report from short-seller Hindenburg criticised the conglomerate and despite the group completing a $2.5 billion share sale a day earlier.
Hindenburg Research’s report last week alleged improper use of offshore tax havens and flagged concerns about high debt.
The group, led by Gautam Adani, one of the world’s richest people, had denied the allegations and called them baseless, adding that it has always made necessary regulatory disclosures.
Investors have, however, dumped shares worth about $68 billion in the aftermath of the report.
On Wednesday, Adani Enterprises and Adani Transmission each lost 1.3%. Adani Power slid 4.6%, while Adani Total Gas slumped 10%, down by its daily price limit.
Adani Total Gas, a joint venture between France’s energy major Total and Adani Group, has been the biggest casualty of the short seller report, losing about $27 billion in value since last Wednesday.
Adani Enterprises had bounced over the last two sessions as the group mustered support from investors to haul the flagship firm’s share sale over the line on the last day of sale. The company has still lost over $7 billion in value.