Adani Group demands accountability from Hindenburg after $150B losses
What's the story
The Adani Group is seeking accountability from Hindenburg Research, after the US firm's allegations led to a loss of nearly $150 billion in shareholder value. The Securities and Exchange Board of India (SEBI) recently cleared the conglomerate of any related-party violations under existing laws. According to Business Standard, a person close to the group questioned who would hold Hindenburg accountable for the losses suffered by millions of investors.
Market response
Adani stocks surge after SEBI's clean chit
Following SEBI's ruling, the nine companies under the Adani Group saw their stocks rise between 0.3% and 12.4%. Adani Power was the biggest gainer with a 12.4% jump in its stock price. However, despite this rally, the combined market cap of these companies still remained below ₹14 lakh crore, less than what it was before Hindenburg's allegations when it crossed ₹19 lakh crore.
Regulatory scrutiny
No evidence of wrongdoing found by regulators
SEBI launched an investigation in 2023 into the Hindenburg allegations, which took time to reach its current conclusion. The regulator found no evidence of fraud, market manipulation, or fund diversion. A six-member committee mandated by the Supreme Court to probe the Hindenburg claims also cleared the Adani Group of any wrongdoing.