On Thursday, a decline was witnessed in the share prices of Adani Group companies. Although the shareholders hoped that the decline would be for a short while, things were much worse than expected.
The share prices for the Group continued to decline for the second consecutive day in the Indian trading market.
Hindenburg is the Reason
The reason behind the share price decline for the Adani Group is Hindenburg, a short seller group that has been imposing several allegations on the conglomerate firm.
The short seller firm reportedly made an announcement at the beginning of the running week that it had a short position in the particular conglomerate.
Since the announcement, the share prices for the company have continued to face a downtrend in the stock market.
However, the Thursday and Friday trading sessions have proven to be extremely problematic for the Adani Group.
Several Allegations from Hindenburg
At the start of the running week, a report was published that carried information about Hindenburg’s allegations against the Adani Group.
The report detailed multiple allegations against the particular firm. It claimed that the particular group is involved in manipulating the stock market.
It claimed that the conglomerate company is completely shameless in its act of manipulating the stock market. It is keeping its stock at the very top, which is why it has risen to huge heights in recent years.
In addition to the above allegations, Hindenburg has made a very bold claim against the company. It has been claimed that the Adani Group has been involved in running different kinds of scams and frauds.
As per the short seller, the Group has been involved in such activities for a very long time. It has gone on to claim that the company has been doing this for multiple decades.
The Adani Group Rejects the Allegations
On two separate occasions, the Adani Group has tried to clear its position by making a couple of statements on the matter.
They have completely denied such allegations, claiming that they have not been involved in any kind of unethical stock market manipulation.
Alongside their statement, the Adani Group has made a counter-claim against Hindenburg. The legal teams at the Adani Group have claimed that Hindenburg is reportedly working for a foreign entity.
As per the conglomerate, the foreign entity is not happy with the progress and success of the company. Therefore, they have adopted the strategy of having someone defame their company.
This way, they want to mislead the investors and the stakeholder communities from the right track. They may stop buying and trading in their stocks after the recent allegations.
They have publicly announced that the recent actions of Hindenburg are reckless and intentional. They know exactly what they are doing and what their true motive behind the matter is.
Statement Issued by the Legal Team
The legal teams at the Adani Group are working tirelessly to deal with the situation. It is up to them to ensure that the company continues to operate and gets to the bottom of the entire matter.
The legal team has also confirmed that they will be reviewing the entire process under punitive and remedial allegations.
They will not only seek legal guidance and clarity involving the crypto industry from the Indian laws. They will be doing the same to deal with legal matters from the United States.
For now, the legal teams are trying to stop themselves from making any statement about the matter.
Share Price Performance of the Conglomerate
In the latest market trading sessions, the share prices for Mumbai-listed Adani Port Company have dropped by 13.8%.
The share prices for Adani Power have declined by 5%, a 19.89% plunge has been recorded for Adani Green Energy, and Adani Transmission dropped by 19.47%.
The share prices for Adani Enterprises recorded an over 9% drop in the recent trading session.