Adani losses top $100 billion in wake of Hindenburg Research report

India’s Adani conglomerate deepened market losses to exceed $100 billion on Thursday, which have snowballed since a short-seller’s scathing report triggered market turmoil and led the corporate to stroll again its public share sale.

Losses throughout Gautam Adani’s essential companies hit $107 billion by 10 a.m. London time on Thursday for the reason that Jan. 24 publication of an extensive critical report from New York’s Hindenburg Research, which has disclosed a brief place in Adani Group corporations.

Market worth loss for Adani corporations

Supply: CNBC, FactSet, as of 10 AM UTC on Feb. 2

Alleging a two-year investigation, the report charged the conglomerate with partaking in a “brazen stock manipulation and accounting fraud scheme over the course of decades.”

The Adani firmly denied the accusations as “nothing but a lie” from the “Madoffs of Manhattan” in a 413-page riposte that failed to assuage skittish investor sentiment and rein in a fast sell-off.

“It is tremendously concerning that the statements of an entity sitting thousands of miles away, with no credibility or ethics has caused serious and unprecedented adverse impact on our investors,” the Adani response mentioned, describing Hindenburg as an “unethical short seller.”

“Hindenburg has not published this report for any altruistic reasons but purely out of selfish motives and in flagrant breach of applicable securities and foreign exchange laws,” it mentioned.

Hindenburg on Jan. 29 retorted that the Adani commentary “predictably tried to lead the focus away from substantive issues and instead stoked a nationalist narrative, claiming our report amounted to a ‘calculated attack on India’.”

Forbes downgraded Gautam Adani from its Top 10 listing of the richest males in the world.

The swift share decline of Adani Group corporations has sparked issues over broader systemic danger to Indian markets. India’s central financial institution has requested native banks for the main points of their publicity to the Adani conglomerate, Reuters reported Thursday, citing authorities and banking sources.

“Unprecedented” market situations and sharp fluctuations in the every day inventory value pushed Adani Enterprises to ax its $2.5 billion follow-on public providing (FPO) on Wednesday.

“The interest of the investors is paramount and hence to insulate them from any potential financial losses, the Board has decided not to go ahead with the FPO,” Adani said in a statement.  

The FPO sale had achieved a full subscription.

—CNBC’s Ganesh Rao contributed to this text.

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