Adani shares plummet after investment researcher alleges share rigging and fraud
Hindenburg Research, a US-based investment research firm, has alleged that the Adani Group had engaged in brazen stock manipulation and accounting fraud scheme. It has also accused the business house of improper use of offshore tax havens and flagged concerns about the group’s high debt. Investors in Adani group firms lost a whooping Rs 85,761 crore in market value as shares slumped. Adani Group denied the allegations and questioned its timing ahead of the follow-on public offer of its flagship company.
Why it’s important: Although there has been concerns over the high indebtedness of Adani companies, there has never been accusations of such large-scale share manipulation and wrongful use of tax havens. Adani may issue a more specific response to Hindenburg Research’s allegations.
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