Adani Group Loses Billions After Allegations

The Adani Group, an Indian conglomerate, experienced a significant share selloff on Monday, losing approximately $2.4 billion in market value after Hindenburg Research accused the head of India's market regulator, Madhabi Puri Buch, of having conflicts of interest linked to offshore funds associated with the group. This decline, which represented a recovery from earlier losses exceeding $13 billion, reignited concerns stemming from Hindenburg's initial allegations of stock manipulation and corporate fraud made 18 months ago. Hindenburg's latest report, citing whistleblower documents, claimed that Buch's previous investments created a conflict of interest regarding the ongoing investigations into the Adani Group. In response, Buch dismissed the allegations as baseless, asserting that the claims were an attempt at "character assassination." The Securities and Exchange Board of India (SEBI) also stated that Hindenburg's allegations had been thoroughly investigated. On the trading front, shares of Adani Enterprises fell by 1.1%, while other subsidiaries, including Adani Ports and Adani Power, saw declines ranging from 0.6% to 4.2%. Only Adani Green managed to close 1% higher. Despite the turmoil, investments from firms like Abu Dhabi's International Holding Company and GQG Partners have helped stabilize investor confidence since the initial Hindenburg report, with total losses narrowing from $150 billion to about $32.5 billion. Political reactions to the allegations have been polarized, with ruling party members defending SEBI's integrity while opposition leaders, including Rahul Gandhi, expressed concerns over the regulator's credibility. As the situation unfolds, analysts predict a short- to medium-term impact on Adani stocks, particularly affecting retail investors.