Adani’s shares fell further as it weighed legal action against Hindenburg

Gautham Adani, Chairman and Founder, Adani Group, at the News18 Rising India Summit in New Delhi, India on February 25, 2019. Since becoming a billionaire in 2008, Adani is now one of the richest people in the world with a net worth of $113 billion, according to the Bloomberg Billionaires Index.

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Shares of Adani Group companies saw steep losses for the second consecutive trading session in India after the company was short-seller. Hindenburg announced his short position In group companies earlier this week.

In a lengthy statement released earlier this week, Hindenburg detailed several allegations against the Group’s companies.

Adani rejected the claims in two separate statements, describing the short-seller’s claims as “a deliberate and reckless attempt by a foreign company to mislead the investor community and the public”.

“We are evaluating the relevant provisions under US and Indian laws for remedial and punitive actions against Hidenburg Research,” said Jatin Jalundwala, legal head, Adani Group.

Stocks listed in Mumbai Adani Enterprises It fell more than 9% in India’s trading session on Friday. Adani Transmission 19.47% down Adani Green Energy 19.89% and Adani Power 5% lost. Adani PortThe share price also fell by 13.8%.

The moves followed Wednesday’s losses after the initial release of Hindenburg’s report. Indian stock market closed on Thursday.

The short-seller firm doubled down on its initial stance after Adani’s responses, stressing that the group had not responded to any of the questions raised, and that any cases filed against Hindenburg were “meritless”.

“If Adani is serious, it should also file a case in the US, where we operate. We have a long list of documents we are seeking in the legal discovery process,” it said.

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“We fully stand by our statement and believe that any legal action taken against us is without merit,” it said.

Bill Ackman, the billionaire investor and CEO of Pershing Square Capital Management, expressed his support for the short-selling firm in a tweet posted shortly before the market opened in India.

“I found the Hindenburg report very credible and very well researched,” he wrote, adding that the Adani Group’s response “speaks volumes.”

“Caveat emptor,” he added.

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Reuters reported Anchor investors, companies that allot shares at fixed prices ahead of public offerings, bid up 90 billion rupiah worth of shares, and Malaysia’s Maybank allocated more than 34% of shares reserved for institutional investors, while Abu Dhabi Investment Authority added 2.56%.

After becoming a billionaire in 2008, Adani is now one of them Richest people in the worldAccording to $113 billion in wealth Bloomberg Billionaires Index. The index shows that his net worth has fallen by about $7 billion to date.

In August last year, the company was a Hostile takeover Indian media group NDTV said in a statement that the move “was carried out without any approval” from its founders.

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