Adani stocks: Adani stocks recover most of their Hindenburg losses

Mumbai: On January 24, 2023, the US-based short-seller Hindenburg Research released a scathing report on Adani Group accusing the conglomerate of engaging in ‘brazen stock manipulation’ and ‘accounting fraud’, sending the stock prices crashing over the next few months and forcing its flagship company Adani Enterprises to call off its ₹20,000-crore follow-on public offer. Till then, the group was on a roll with stock prices on a record-breaking run. A year later, the conglomerate has largely recovered from the shocks in the aftermath of the report, while shares of most group companies have managed to cut a portion of their losses.
Out of the 10 listed Adani companies, only three are above the prices seen on the same day last year.

Hindenburg, in its report, said seven out of the 10 listed companies of the Adani Group were overvalued by over 85% on average. The short-seller predicted a 97% decline for Adani Enterprises, Adani Green, and Adani Total. Adani Enterprises and Adani Green are currently trading just 14% below their previous levels, while Adani Total Gas is still down 74%.

Within a span of two weeks from the release of the report, the group’s market value dropped from ₹19.2 lakh crore to ₹6.7 lakh crore in early February. After the rebound, the Adani Group’s market-cap has risen to ₹14.5 lakh crore, but it remains ₹4.7 lakh crore below the January 25 level.

According to Bloomberg Billionaire data, the net worth of the Adani Group’s chairman Gautam Adani has touched $90.8 billion as of Wednesday, narrowing the gap with India’s richest man, Mukesh Ambani, who is worth $100 billion. In September 2022, Adani briefly became the second-richest person globally with a net worth of $147 billion (nearly ₹12 lakh crore), surpassing Amazon founder Jeff Bezos.

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