Nearly 18 months after Hindenburg Research raised concerns about wrongdoing and stock price manipulation within the Adani group of companies, the U.S.-based short seller on Saturday (August 10, 2024) accused the chairperson of India’s stock market regulator, who is overseeing the investigation, of having a stake in obscure offshore entities allegedly involved in what it called “the Adani money siphoning scandal.”
Hindenburg Research, referencing documents from a whistleblower, accused SEBI chairperson Madhabi Puri Buch and her husband, Dhaval Buch, of holding stakes in offshore Bermuda and Mauritius funds through intricate structures. Hindenburg also claimed that, just weeks before her appointment as a full-time SEBI member in 2017, Mr. Dhaval Buch contacted a Mauritius fund administrator, requesting to be made the “sole person authorized to operate the accounts.”
On January 24, 2023, Hindenburg Research published a scathing report accusing the Adani Group of financial misconduct and stock manipulation. This report triggered a sharp decline in the stock prices of Adani Group companies, with some plummeting by as much as 83 percent.
After the Hindenburg report was released, the stock dropped to a low of ₹1,017, representing a 70 percent decline. It wasn't until May 23, 2024, that the stock fully recovered to its pre-report levels. As of August 9, 2024, shares of Adani Enterprises are trading at around ₹3,188, which is about 6 percent below their price prior to the report.
Adani Wilmar's performance continues to disappoint investors. The stock has plummeted from ₹573 to ₹286, representing a 50% drop, and has struggled to recover its previous value. It is currently trading at ₹385, still about 33% below its pre-decline level.
The stock experienced a 52% decline, dropping from ₹275 to ₹132. However, it has since more than doubled in value from the time the research report was released.
After the Hindenburg report, the stock dropped to a low of ₹395, marking a 48% decline. It took 119 days to recover to its pre-report level, which it reached on May 23, 2023. As of August 9, 2024, the closing price of Adani Ports is ₹1,534, reflecting a 101% increase from the closing price at the time of the report's release.
Adani Energy Solutions has seen a partial recovery. The stock dropped from ₹2,726 to ₹632, a decline of 77 percent. It is now at ₹1,104, still 60 percent below its level before the report. This suggests that although there has been some recovery, the stock continues to be heavily affected by the initial report.
Adani Green Energy's stock plummeted from ₹1,917 to ₹485, a 75% drop following the Hindenburg report. However, after 379 days, the stock rebounded to its pre-report levels on February 7, 2024.
Adani Total Gas has been hit the hardest, with its stock price plunging from ₹3,892 to ₹650, marking an 83 percent decline. Despite some recovery, the stock is currently trading at ₹870, which is still about 78 percent below its pre-report level. This sluggish rebound underscores the persistent challenges the company is facing.
