Adani Power’s stock fell 10.94% on the BSE, reaching a low of Rs 619. Adani Enterprises fell 5.27 percent to a level of Rs 3,018.55. Before making a comeback, Adani Energy Solutions fell 17.06 percent to a low of Rs 915.70.
Following allegations by Hindenburg Research that SEBI Chairperson Madhabi Puri Buch and her husband Dhaval Buch had connections to an offshore fund connected to the Adani group, shares of Adani Enterprises Ltd, Adani Power Ltd, Adani Total Gas Ltd, Adani Energy Solutions Ltd, Adani Green Energy Ltd, and five other Adani group stocks saw a 17 per cent decline in trading on Monday. In response to new allegations about Hindenburg, the Adani group, the market regulator SEBI, and the Buchs all provided clarifications, but in the meantime, Adani stocks dropped.
Analysts predict that the current weakness in Adani stock prices will pass quickly. Adani Power’s shares fell 10.94% to a low of Rs 619 on the BSE. At a low of Rs 3,018.55, the flagship company Adani Enterprises’ shares fell 5.27 percent. In actuality, Adani Energy Solutions fell 17.06 percent to a low of Rs 915.70 before beginning to rise. Later, the stock fell 2.38 percent to Rs 1,078. At Rs 1,656.05., Adani Green Energy fell 6.96 percent.
Adani Total Gas dropped to Rs 753, a 13.39% decrease. Later on, it bounced back to a level of Rs 829.85, down 4.55%. Adani Wilmar saw a 6.49 percent decrease to Rs 360. Adani Ports fell Rs 1,457.35 (4.95%) to Rs 1,457.35. NDTV, Ambuja Cements, and ACC all experienced a 2-3% decline.
In addition to allegedly acting as a conduit for Vinod Adani’s finances, Hindenburg asserted that the IPE Plus Fund, in which the SEBI chief had investments, had additional close ties to the Adani family. Anil Ahuja was the IPE Plus Fund’s founder and chief investment officer (CIO). Based on his biography and exchange disclosures, he was a director of Adani Enterprises for three terms totaling nine years, ending in June 2017, according to Hindenburg. It stated that he had previously served as an Adani Power director.
In response to these assertions, the Adani Group emphasized that Anil Ahuja, who was referenced in the report, was a director of Adani Power’s 3i investment fund from 2007 to 2008 and subsequently of Adani Enterprises until 2017. The Adani Group has clarified, however, that it has no business relationship with any of the people or things that are mentioned in what they refer to as a calculated attempt to damage their reputation.
In addition, the head of SEBI stated that Dhaval had a long-standing friendship with the fund’s chief investment officer, Anil Ahuja, from both school and IIT Delhi, which was a factor in the decision to invest in the fund. The main factor in their investment choice was Ahuja, who had a successful investing career with experience at Citibank, J.P. Morgan, and 3i Group plc. The release said, “We redeemed the investment in that fund when Mr. Ahuja left his position as CIO of the fund in 2018.” Along with Ahuja’s confirmation, they also verified that the fund never invested in any bonds, stocks, or derivatives belonging to any Adani group companies.
The claims made by Hindenburg are not taken seriously by Ventura Securities’ Vinit Bolinjkar. “They are recycling identical materials. Without providing any proof of criminal activity, they are attempting to link one incident to another. It’s recycled and desperate old wine in a new bottle.”
Although Bolinjkar noted that the report might have a short-term effect on Adani stocks and the market, they should soon rebound. Any significant decline in Adani Group stocks, according to Bathini, might represent a buying opportunity.
According to Wealth Mills Securities Director of Equity Strategy Kranthi Bathini, stock prices are dependent on profits.
Bathini said he would be more worried if the Hindenburg report brought up any points that would affect the profits of the Adani group. With the exception of the SEBI Chair’s allegations, he said, “The majority of the claims in the report are already known to the market. These rumors have been around for a while. I doubt the new report will have a major negative impact on the Adani group’s earnings potential in the medium to long term, aside from a possible knee-jerk reaction that lasts a day or two.”
