Adani Group Stocks Plunge Amid New Hindenburg Allegations

Stocks Fall Sharply Following Claims Against SEBI Chairperson Shares of Adani Group companies experienced significant declines on Monday, with some falling as much as 17% in response to new allegations from Hindenburg Research. The research firm suggested potential links between SEBI Chairperson Madhabi Puri Buch and an offshore fund associated with the Adani Group. Despite clarifications from the Adani Group and SEBI, the market reacted sharply to these renewed claims.

Severe Stock Drops Across the Adani Group

Adani Power saw its shares plummet by 10.94%, hitting a low of Rs 619 on the BSE. Adani Enterprises fell 5.27%, reaching Rs 3,018.55, while Adani Energy Solutions nosedived 17.06% to Rs 915.70 before recovering slightly to Rs 1,078. Adani Total Gas dropped 13.39% to Rs 753, later recovering to Rs 829.85. Adani Green Energy and Adani Wilmar also saw declines of 6.96% and 6.49%, respectively.

Hindenburg Allegations: Key Claims and Reactions

Hindenburg’s report alleged that SEBI Chairperson Buch and her husband had ties to an offshore fund with connections to the Adani Group. It was also claimed that Anil Ahuja, former CIO of the fund, had past connections with Adani companies. In response, the Adani Group clarified that Ahuja had served as a nominee director in the past and that there was no ongoing commercial relationship. SEBI emphasized that the investment decisions were based on Ahuja’s professional reputation, and not his past affiliations.

Market Analysts Weigh In-Short-Term Impact Expected

Analysts have largely dismissed the new allegations as recycled and lacking fresh evidence of wrongdoing. Vinit Bolinjkar of Ventura Securities characterized the claims as “old wine in a new bottle” and anticipated only a short-term market impact. Kranthi Bathini of WealthMills Securities noted that the market should recover as the earnings potential of Adani Group remains intact. Dr. V K Vijayakumar of Geojit Financial Services suggested that a “buy on dips” strategy could prove effective, as the market absorbs the latest news. Political and Market Reaction The Hindenburg report has also sparked political debate, with opposition leaders calling for SEBI Chairperson Buch’s resignation and a parliamentary probe into the allegations. Despite the political and media attention, market analysts believe that the impact on Adani Group’s long-term performance will be minimal.

As investors reassess the situation, the combined market capitalization of Adani stocks fell to Rs 16.7 lakh crore, with investors losing approximately Rs 53,000 crore. However, market experts expect a stabilization in the near future, suggesting that current price drops might present buying opportunities for long-term investors.