Carnage in Adani Stocks as Hindenburg Report Hits Home

Adani Vs Hindenburg continued to roil the Indian markets with share prices of the conglomerate’s various companies continuing to test the daily circuits. The worst hit was its flagship, Adani Enterprises, which lost another 60% during the week. In the face of the massive selloff and the precipitous fall in prices, the company scrapped its record Rs 20,000 crore follow-on public offering (FPO), citing investor protection concerns. This came a day after it had announced that the issue had been fully subscribed. Concerns continued to mount through the week as Citigroup Inc.’s wealth arm stopped accepting securities of the group’s firms as collateral for margin loans, while Credit Suisse, the Swiss lender’s private banking arm, assigned a zero lending value for notes sold by Adani Ports and Special Economic Zone, Adani Green Energy and Adani Electricity Mumbai Ltd.