Adani Group-Hindenburg: What options Adani Group have? Anil Singhvi decodes

Adani Group-Hindenburg Report: Adani Group companies’ market capitalisation has declined by more than 4 lakh crores within two sessions after forensic audit firm Hindenburg Research leveled allegations of stock price manipulation and fraud against billionaire Gautam Adani's group.

Now, the question remains what will Adani Group do and what options are left with them? moreover, when will the group companies' share prices and market cap stop falling? Zee Business Managing Editor Anil Singhvi answers all these questions in a DNA Show.

Adani Group to take legal action against Hindenburg

#Hindenburg के दावों के बाद #AdaniGroup के पास कौन से विकल्प रह गए हैं ?

जानिए अनिल सिंघवी से @AnilSinghvi_ #Hindenburg #HindenburgReport #AdaniEnterprises #HindenburgResearch #AnilSinghvi pic.twitter.com/1oxGygsA4Z

— Zee Business (@ZeeBusiness) January 27, 2023

According to Anil Singhvi, the allegations and counter-allegations between Hindenburg and Adani Group will continue. Adani Group has informed exchanges about taking legal action against the financial research company.

Also Read: A shortseller's report, a diversified empire and meltdown in stock market - what we know so far in Adani vs Hindenburg saga

“They have the option of legal action and will have to decide whether the group will file a case in India or in America as Hindenburg is a US-based company,” as per Singhvi. Hindenburg has already challenged Adani Group that they should come to America and file a case against them.

Hindenburg will ask Adani for documents, evidence, etc, and the matter will be dragged on for a long time, as per Singhvi. He added it is certain that the ball is in Adani Group's court and erosion of 4 lakh crores in the market cap as well as the free fall of the group companies’ shares is a big deal.

Singhvi On Hindenburg Research

Singhvi said Hindenburg Research’s track record is good and creates a big impact on the shares of any company, they come out with a short seller report. It is expected that Adani Group stocks may further see an extended decline and more erosion in the market cap going forward.

#Hindenburg के दावों के बाद #AdaniGroup के पास कौन से विकल्प रह गए हैं ?

जानिए अनिल सिंघवी से @AnilSinghvi_ #Hindenburg #HindenburgReport #AdaniEnterprises #HindenburgResearch #AnilSinghvi pic.twitter.com/1oxGygsA4Z

— Zee Business (@ZeeBusiness) January 27, 2023

Adani Enterprises FPO on watch

Adani Group’s Rs 20,000 crore FPO (Follow-On Public Offer) was launched on Friday and will close on Tuesday, January 31. If the FPO failed to fill completely, then it is clear that the market has lost confidence in the shares of the group, and the stocks will further decline.

Also Read: Adani Group Shares Fall 5 - 25%, What Are The Current Situation Of The Adani Group's Shares?

But if the FPO receives a good response during the three-day period, then the decline might see a full-stop. The next two trading sessions are important for Adani Group. The FPO on Friday was merely subscribed by 1 per cent, as per data available on the exchanges.

Adani Group’s reaction to Hindenburg Report

Adani Group on Thursday issued a statement saying it is exploring legal options to seek "punitive action" against Hindenburg Research for acting "recklessly" to sabotage share sales of its flagship company.

Also Read: Adani Group stocks in freefall, wipe out Rs 4.1 lakh crore of investor wealth

The company's head of legal affairs, Jatin Jalundhwala, said, "Hindenburg Research published the report on January 24, 2023, against the group without any research and complete information with the wrong intention." This has adversely affected the Adani Group, our shareholders and investors.