Adani Group Faces Stock Decline Amidst US Probe in June 2023
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| Adani Group Faces Stock Decline |
In a startling turn of events, Adani Group, one of India's leading conglomerates, witnessed a significant decline in its stocks today.
The flagship company, Adani Enterprises, saw its share price plummet by 9.7% to Rs. 2,162.85. This sudden drop came after a Bloomberg report revealed that US authorities were investigating the representations made by Adani Group to American investors following Hindenburg Research's controversial report.
Consequently, investors with substantial holdings in Adani Group received inquiries from the US Attorney's Office in Brooklyn, New York, and the US Securities and Exchange Commission (SEC) regarding the information provided by the company.
As a result of this unfolding investigation, the repercussions were felt across other companies under the Adani Group umbrella. Adani Ports and Special Economic Zone witnessed a sharp decline of 5.7%, trading at Rs 702.85.
Adani Power shares tumbled by 6.15% to Rs 241, while Adani Transmission experienced a significant setback of 8.28%, falling to Rs 738.15. Adani Green Energy also faced a decline of 3.71%, settling at Rs 938, whereas Adani Total Gas experienced a dip of 3.83% to Rs 630.
Similarly, Adani Wilmar shares fell by 3.8% to Rs 402.4. NDTV, Ambuja Cement, and ACC stocks also struggled and traded in the red. Consequently, the market capitalization of the Adani Group slipped below Rs 10 lakh crore as the stocks continued to plunge. 4JGFI5L
These recent events can be traced back to January 24 when Hindenburg Research, a US-based short seller, published a report accusing Gautam Adani and his brothers of engaging in fraud and manipulating stocks through offshore shell companies. Adani Group promptly denied these allegations, describing Hindenburg's report as nothing short of a calculated securities fraud.
The current investigations by US authorities cast a cloud of uncertainty over the Adani Group, further intensifying the scrutiny faced by the conglomerate. As developments unfold, investors and market participants eagerly await the outcome of the US probe, which could potentially have far-reaching implications for Adani Group and its stakeholders.
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