Adani Stocks Have Crashed!  Here's Everything You Should Know

Hindenburg Research Reports on Adani Group

– The Hindenburg Report claims that Adani Group has engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades. -  The report also mentioned that Adani companies have taken on substantial debt, like pledging shares of their inflated stock for loans.

– The Hindenburg concluded with 88 questions for Gautam Adani, saying if he truly embraces transparency, as he claims, it will be easy to answer.

Worst Affected Sector

– The banking sectors are the worst affected due to Adani's stock crash. – Between Jan. 24 and 27 i.e in 3 days, SBI & LIC have lost a market cap of ₹ 78,118 crore.

Adani's Losses

– Adani Enterprises, Adani Transmission, Adani Green Energy and Adani Total Gas saw almost 20% of their share value plummet. – Adani cement companies, ACC was down 15% on Friday, while Ambuja plunged up to 25%. – In total, Adani lost more than $60 billion in market value.

The 413-Page Response by the Adani Group

– Adani group response was that the Hindenburg research was “neither ‘independent’ nor ‘objective’ nor ‘well researched’”. – The Adani group said the report was “baseless” and “driven by an ulterior motive to create a false market”.

– Adani’s response further mentions that  “Hindenburg Research has conveniently ignored the Indian judiciary and regulatory framework”. – "All transactions entered into by us with entities who qualify as 'related parties' under Indian laws and accounting standards have been duly disclosed by us," Adani said in the 413-page response issued.

Should investors sell Adani stocks or buy the dip? Sanjiv Bhasin, Director,IIFL Securities answers

” It is the investor’s choice. We will not try to influence that. We definitely think there is merit in the group and we think the longer term prospects remain very robust. One cannot have growth of the type of growth in infrastructure which they have done without debt. I would definitely advocate a buy at least in the FPO and I would say Ambuja and the ports are looking very attractive at this price,” says Sanjiv Bhasin.

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