Stocks of affiliated companies founded by Asia’s richest man Gautam Adani continued to fall in Mumbai markets on Friday, extending a slide after a U.S. short seller published its two-year investigation into the group’s business practices. Stocks in flagship firm Adani Enterprises
sank as much as 20% and other linked companies saw similar losses on Friday. The sell-off intensified for the seven Mumbai-listed companies since Hindenburg Research’s report came out on Wednesday. The price of U.S. dollar bonds of Adani firms also have fallen since Wednesday.
The Adani Group according to Bloomberg is planning a detailed response to the 100-page short seller dossier on Friday, which alleged “brazen stock manipulation and accounting fraud” from the Indian conglomerate. The group disputed the claims in a conference call with bondholders of Adani Ports & Special Economic Zone
on Thursday, branding Hindenburg’s report as “bogus” and telling investors the allegations of accounting fraud were “devoid of facts”, according to Bloomberg. MarketWatch has reached out to the Adani Group for its detailed response to Hindenburg’s claims. The Adani Group said publicly on Thursday that it was exploring taking legal action against U.S.-based Hindenburg Research. Its head of legal Jatin Jalundhwala had called it a “maliciously, mischievous, unresearched” report. Hindenburg hit back in a tweet shortly after. “Regarding the company’s threats of legal action, to be clear, we welcome it,” the research firm said. “If Adani is serious, it should also file suit in the US where we operate. We have a long list of documents we would demand in the legal process.” Pershing Square Capital Management founder Bill Ackman called the Hindenburg report “highly credible and extremely well researched” in a tweet early Friday.