US investment firm Heisenberg published a report and accused the Adani group of fraud and stock manipulation. Adani enterprise’s share fell by 20% on Friday 27/01/2023 which is a flagship company of Adani group.
Adani group dismissed the allegations and is ready to file a case against the US firm. Because of this report, Adani’s asset value dropped by nearly $20.8 billion. This report was published when Adani group going to rise an FPO of Rs.20000 crore for Adani Enterprises.
Effect of the news on the stock market:
Last Friday group shares were hit by lower circuits like
- Adani total gas and Adani green energy hit a 20% lower circuit,
- Adani port was down by 16% last Friday.
- Adani enterprise share price dropped by 20%
- Adani Power hits a 5% lower circuit
- Adani Wilmar also 5% lower circuit
Heisenberg is a US-based research company that is famous for publishing this type of controversial news. The company said that they performed 2 years detailed study or investigation of the seven Adani groups company and spoke with so many individuals like former senior executives of the Adani group.
The company said that adani performed stock manipulation and it used offshore tax heavens. Group also performed so many fraud schemes. So many companies of this group share gained by more than 1000x from the last 5 years which is not looking natural. So many Adani companies have also taken substantial debt and pledged shares for loans.
Most of the financial and key decision is taken by Adani’s family members only and it became a family business said a former group executive.
Last year’s performance of Adani group share:
- Adani enterprise-139% return
- Adani Power-210%
- Adani ports-19%
- Adani total gas-83%
- Adani transmission-43%
- Adani wilmer-179%
- Adani green energy-40%
Most of the Adani group share grew by 100% by last year.
Adani released 413 pages reply to 88 questions and said that it is a calculated attack on India. Adani told that this allegation nothing but a lie.