Most of Adani’s Stocks Fall on Rejection of Hindenburg’s Reaction

(Bloomberg) — Most of the Adani Group companies have extended a $51 billion stock sell-off, a sign of the billionaire’s denial of fraud allegations from short-selling firm Hindenburg American Research has largely failed to convince investors. Dollar bonds also fell.

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Adani Green Energy Ltd., Adani Total Gas Ltd. and Adani Transmission Ltd. Each company is down more than 10% when trading starts in Mumbai, while Gautam Adani’s flagship is Adani Enterprises Ltd. defied this trend by gaining 6.3%.

The latest turmoil comes as Adani Enterprises seeks to close a $2.5 billion share sale, with Hindenburg saying the 413-page rebuttal did not answer most of the company’s questions. surname. The story also risks undermining broader confidence in India, until recently Wall Street’s top investment destination, and accelerating the nascent transition to a reopened China.

“This is certainly not a good advertisement for India and risks damaging sentiment in the short term,” said Hugh Young, Asia president of abrdn plc. “We are not invested in Adani, so the interest is broader.”

In his rebuttal published Sunday, Adani said that about 65 of the 88 questions were resolved in the corporation’s public disclosures, describing the short seller’s conduct as “nothing more than a fraud.” calculated securities fraud in accordance with applicable law.” It reiterates that it will “exercise our rights to pursue remedies to protect our stakeholders from all appropriate authorities.”

The verbose response came during the final stock offering of Adani Enterprises, which received a total of 1% registrations for the institutional and retail portion on Friday. While investors in India’s public offerings typically wait until the last day of an auction to place their bids, there are concerns that Hindenburg’s attack was aimed at the richest man in the land. water will make the person’s psyche worse.

In the latest development, Hindenburg said Monday that Adani’s rebuttal did not specifically answer 62 of the 88 questions posed by short sellers. “Of the questions it answered, the majority of the team confirmed or attempted to circumvent our findings,” it said in a statement.

“It is uncertain whether Adani’s rebuttal will be enough to assuage investor concerns. Brian Freitas, a securities analyst who publishes on the Smartkarma platform, said just because things are revealed and known doesn’t mean they are true. “How to explain such a large group with no analyst coverage and no mutual funds?”

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