Adani Stocks Are Back On Strong Pedestal Post Hindenburg

On January 24, 2023, Hindenburg Research released a report alleging that the Adani Group, a major conglomerate in India, had been involved in a long-standing scheme of stock manipulation and accounting fraud. The publication of this report occurred just days prior to the scheduled USD 2.5 billion share offering by Adani Enterprises, the conglomerate’s primary company.

Hindenburg Research Report levelled further allegations against the Adani Group, accusing them not only of accounting fraud but also of participating in suspicious transactions worth billions of dollars with Vinod Adani, the brother of the group’s chairman. According to the report, the conglomerate allegedly utilized a network of offshore shell entities controlled by Vinod Adani for the purpose of stock manipulation.

The Indian Stock Exchange has a total of 10 listed companies belonging to the Adani group. Following the wide circulation of a published report, these stocks experienced a significant decline, causing widespread fear among investors. In fact, some of the Adani stocks were even subjected to lower circuit limits, compounding the concerns surrounding their sharp decline.

Also Read: Journey of Adani Group Stocks

Let’s try to analyse how much these stocks fell after the report and how much they have recovered till today:

Let’s delve deeper into the shareholding pattern of these companies. Observation reveals that retail investors increased their shareholding in Q4FY23 compared to Q3FY23. On the other hand, foreign institutional investors (FIIs) increased their stake in four Adani group stocks, while domestic institutional investors (DIIs) increased their stake in five companies. The following demonstration illustrates where and how much these participants have invested.