The capitalization of the gas company of Indian businessman Gautam Adani Adani Total Gas has collapsed by 76% since the publication of the investigation by Hindenburg Research. In general, the market value of the public companies of the conglomerate has decreased by more than $135 billion since January 24, calculated Bloomberg.
The collapse of quotes did not stop even the decision of the exchange to reduce the maximum amplitude of intraday price fluctuations from 20% to 5%. On Monday, February 20, Adani Total Gas ended trading down 5% to 925.1 Indian rupees ($11.19). On previous 16 stocks also showed the maximum possible fall in trading sessions.
Adani Total Gas was the hardest hit after the release of the report of the American research company. Prior to its publication, it was the most valuable company in Adani’s business empire. Now the company has dropped to second place.
Hindenburg Research notedthat the price of the shares of the gas giant before the publication of the report was more than 90% higher than their fair value. Among the problems mentioned was the high debt load of the business.
(Photo: Hindenburg Research)
The consulting company Piper Serica Advisors noticed that additional pressure on shares is exerted by lower gas prices in Europe. Another negative factor was the decision of the French energy company TotalEnergies to suspend the implementation of a multibillion-dollar plan for the production of green hydrogen, together with the Adani Group,
Hindenburg Research January 24 released a report in which she accused the Indian holding of numerous financial irregularities and manipulation of the stock market. Hindenburg Research, which looks for hidden problems in public companies in order to capitalize on the collapse of their quotes, announced the opening of short positions against the shares of companies from the Adani Group.
Gautam Adani himself also suffered multi-billion dollar losses. Prior to the publication of the investigation, he was considered the richest man not only in India, but throughout Asia. In September 2022, Adani even overtook Amazon founder Jeff Bezos to become second in Bloomberg’s global billionaire rankings for a while. However, shortly after the release of the Hindenburg Research report, the Indian businessman dropped out of the top 10. As of February 20, 17:05 Moscow time Adani occupied 25th place in the ranking with a fortune of $49.1 billion. At the same time, at the beginning of 2023, the value of his assets exceeded $120 billion.