Most Adani Group stocks dropped on Wednesday, extending losses to $72 billion after a short-seller report criticised the conglomerate and despite the group completing a closely watched share sale a day earlier.
Hindenburg Research's report last week alleged improper use of offshore tax havens and flagged concerns about high debt. It added that shares in seven Adani listed companies have an 85% downside due to what it called "sky-high valuations".
The group, led by Gautam Adani, one of the world's richest people, had denied the allegations and called them baseless, adding that it has always made necessary regulatory disclosures. Investors have, however, dumped shares in the aftermath of the report which has become one of the billionaire's biggest business and reputational challenges.
"There was a slight bounce yesterday after the share sale went through, after seeming improbable at a point, but now the weak market sentiment has become visible again after the bombshell Hindenburg report," said Ambareesh Baliga, a Mumbai-based independent market analyst.
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