The Hindenburg Research has created such a dent in Adani Group’s shares which no one in the financial world expected. Just a month back he was the world’s third richest person!
Within a month of its publication by what was an unknown short-seller (Hindenburg research) to Indian investors then, many of Adani group stocks including Adani Total Gas, Adani Green Energy and Adani Transmission were trading at their multi-year lows, with the group losing over $145 billion in wealth.
Only two Adani stocks have now left with market cap of over Rs 1 lakh crore.
Adani group maintains that among 88 questions that were raised by Hindenburg, 65 were related to the listed companies, six to media reports and rest were on family offices. The group CEO recently said that the Adani group had in the past given disclosures on all 65 questions that Hindenburg raised on January 24.
Nathan Anderson, the founder at New York-based short seller, however, is quite active these days on social media, sharing media reports on Adani group to get support for his report’s finding
Tweeting a news story by Bloomberg on Thursday, Anderson said that it is now confirmed that Vinod negotiated financing deals for the Adani Group and was key player in the group’s largest acquisition.
Not only Adani stocks have been hit by Hindenburg report, its impact was also seen on Adani’s lenders. SBI recently suggested that the bank’s total exposure to Adani Group was 0.9 per cent of the overall loan book and stood at Rs 27,000 crore. The concerns even made the RBI clarify that India’s banking sector was resilient and stable.
“The fears of the Adani crisis impacting the Indian banking system are exaggerated. Some high quality banking stocks are attractively valued now and, therefore, banking stocks have the potential to stage a turnaround,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
- Agencies/ Various Sources