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- The Adani Group has lost more than $100 billion in market value as its stocks took a beating from the Hindenburg report.
- Shares in its flagship business, Adani Enterprises, shed more than 25% on Thursday.
- The volatility in Adani stocks forced founder Gautam Adani to pull a $2.5 billion share sale for Adani Enterprises on Wednesday.
Adani Group stocks have now wiped out over $100 billion in market value, with the troubled Indian conglomerate canceling its share sale in the wake of a short-seller attack, according to Reuters.
Shares in its flagship company Adani Enterprises plunged 26.7% Thursday, and are down almost 60% this year.
The Adani Group – spearheaded by Indian tycoon Gautam Adani – fell into turmoil last month after US short seller Hindenburg Research released a scathing report alleging “brazen stock manipulation and accounting fraud scheme” at the conglomerate.
It sparked a verbal battle between Adani and Hindenburg, with the former calling the report “maliciously mischievous” and “unresearched” while the short seller stood its ground on the accusations, saying “fraud is fraud.”
With the conglomerate taking a massive market beating following the report, it’s forced the group to cancel a $2.5 billion share sale even after Adani Enterprises’ offering was fully subscribed Tuesday with the help of institutional investors.
Meanwhile, Adani’s personal fortune has tumbled after the Hindenburg report. The billionaire has lost nearly $50 billion in net worth this year so far, costing him the title as Asia’s richest person. He is now worth about $72 billion, falling behind fellow Indian billionaire Mukesh Ambani.