Two days after losing 8 per cent, Adani Group shares went down, losing nearly Rs 2 lakh crores in market capitalisation in the early trading hours of Friday. The overall decline in the market capitalisation of all the nine listed Adani Group Companies was at Rs 2.75 lakh crore since Tuesday's closing.
Share drop
While the shares of Adani Total Gas went down by 20 per cent, Adani Green Energy and Adani Transmission fell by close to 19 per cent. Ambuja Cement and ACC slipped to 6 per cent, while Adani Power and Adani Wilmar went down by 5 per cent. The shares of the flagship company, Adani Enterprises, saw a drop of 3.5 per cent.
Despite the announcement that the Adani Group was planning to sue Hindenburg Research for its 'maliciously mischievous' report, which accused the company of stock manipulation and accounting fraud, the shares of the company have continued to fall.
Adani to sue Hindenburg Research
Jatin Jalundhwala, Group Head - Legal Adani, in a statement on Thursday said, "“We are evaluating the relevant provisions under US and Indian laws for remedial and punitive action against Hindenburg Research.” The company also believes that this is an attempt to undermine the goodwill and reputation of the Adani Group and sabotage its plan for a follow-on public offering.
Response by Hindenburg Research
Responding to this legal threat, the US-based Hindenburg Research said in a statement that they stood by their report and believed any legal action taken by the company against them would be meritless.
Hidenburg also challenged the company, asking them to file a suit in the US, where they operate. They also said that they would ask for a long list of documents in the legal discovery process.
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