NO END TO WOES YET

The downward slide in the share price of some of the Adani Group companies continues even as the stock market shows signs of moving on

Calm seems to have returned to the stock market after the initial shock. But Adani Group shares continue to get hammered. The losses in terms of market capitalisation erosion for 10 Adani Group companies have expanded to $130 billion from $108 billion that was wiped off in the first seven eight trading days after January 24.

On January 24, US-headquartered short-seller Hindenburg Research issued a report alleging that the Adani Group had engaged in share manipulation and fraud, although the company has consistently denied these allegations.

By mid-February, responding to the growing criticism from opposition political parties and independent experts, the central government, in a related matter before the apex court, indicated its ‘no objection’ in constituting a “committee” provided a clear remit for any such committee was put in place by the apex court.

It should be noted here that two public interest litigations (PILs) have been filed in the wake of the Hindenburg report that alleged fraud and stock price manipulation by the Adani Group. One of the PILs has demanded that short selling be declared a fraudulent practice.