Investigation Against Adani Group Started In America After Hindenburg Report, 52,000 Crore Rupees Reduced From Market Cap

Adani Market Cap: Gautam Adani’s Adani Group’s woes may once again mount. Sebi, India’s stock market regulator, is already investigating the Adani group following the Supreme Court’s order. After the short-seller Hindenburg Research report came out, American agencies are also trying to find out whether the American investors who invested in the Adani Group shared any information or not. Hindenburg accused the Adani group of manipulating share prices of group companies through foreign companies.

According to a Bloomberg report, the Brooklyn, New York-based US attorney’s office has asked for information from institutional investors who have invested heavily in Adani Group shares in recent months. These institutional investors have been asked what information the Adani group has provided in the disclosure to investors. The US Securities and Exchange Commission is also investigating this base. However, this investigation does not mean that any kind of civil or criminal action will be initiated. Many times law enforcement agencies only investigate on their behalf without taking any action. After the news broke, Nate Anderson of Hindenburg Research tweeted that both US agencies were looking into disclosures made by Adani Group investors.

Major development: The US Department of Justice and the SEC are probing Adani, according to Bloomberg.

Both agencies are said to be scrutinizing Adani’s disclosures to investors. https://t.co/A8REaguNq4

— Nate Anderson (@NateHindenburg) June 22, 2023

The information being collected by American agencies about the Adani Group after the allegations leveled at the Adani Group in the Hindenburg Research Report is pointing to increased surveillance against the group. The news that the Adani group is being investigated by American agencies comes at a time when Indian Prime Minister Narendra Modi is on a visit to the US, where he is receiving a grand welcome.

According to a Bloomberg report, an Adani group spokesperson said they were not aware of the investor enquiries. Spokesmen for the Security and Exchange Commission and the Eastern District of New York US Attorney’s Office declined to comment on the issue.

After this news came to light, the shares of Adani Group are once again witnessing a big drop. Adani Enterprises’ share was up 7.20 percent or Rs. 175 down to Rs. Trading at 2244. Shares of Adani Transmission fell by 5.31 percent. Adani Ports was trading down 3.92 percent and Adani Power was down 4.19 percent. Adani Total Gas is trading down 3 percent, Ambuja Cement down 3 percent. Adani Group has a market cap of Rs. A decrease of more than 52,000 crores is being observed. Earlier, Adani Group saw a major decline on 9 February 2023 when the group’s market cap fell by Rs. 59,538 crore was reduced.