Adani flagship plummets 35% on the day

03/02/2023
Shares in India’s Adani Group, owned by the former Asia’s richest man, extended losses on Friday. It can be described as a blood loss for Adani himself and the relevant stakeholders of the group, but for the short-selling agency Hindenburg, this may mean the entry of huge wealth. In today’s intraday session, Adani Enterprises (AEL), the flagship company of the Adani Group, once expanded its stock decline to 35%, setting a record for the largest intraday decline. Gautam Adani ceded Asia’s richest man to Mukesh Ambani, chairman of India’s Reliance Industries, as shares in his companies tumbled. | Related reading (Financial Association)

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It may only be a matter of time before Adani is targeted by short-sellers. According to the estimates of professional institutions, with the continuous expansion of the past two years, the pace of its borrowing has also been accelerating. The debt of the group has doubled in the past four years. Doubling down, to about $30 billion.

In the face of short-sellers, although Adani strongly opposes all allegations, after all, Hindenburg Research has a good reputation. In order to appease the investment market, it successfully conducted a $2.4 billion equity sale a few days ago. “Hard to harvest”, but the impact of the short-seller’s allegations on the Indian giant is still huge.

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