Adani group’s stock price can crash by 85%

An American research company published a report on Adani group which makes Adani group’s share price fall by 20% and Gautam Adani come down to 7th position from 3rd position in the list of the richest person on the earth. Many market experts are saying that the share price can fall by 85% in the coming days. The American research company, Hindenburg published a report of 106 pages that ask 88 serious questions and puts too many allegations against the Adani group and Gautam Adani, which we will talk about later in the article. First, we are gonna talk about what is the impact of this report point by point:-

  1. LIC loses 16,580 Crore through their shares in the Adani group in just two days. Gautam Adani loses $48 billion ( around 4,17,824.79 crore in Indian rupee) until the market got closed on 27th January 2023, in just 2 days.
  2. Investors loses more than 10.73 Lakh Crore until the market got closed on 27th January 2023.
  3. On Friday, 27 January 2023, in the stock market out of 5 top losers, 4 were the shares of Adani group. These 4 shares are Adani transmission, Adani green energy, Adani enterprise, and Adani ports which crashes by 20%, 20%, 18.52%, 17.33%, and 16.29% respectively.
  4. As the market was closed on 26th January, on 25th and 27th January, Sensex loses 1100 points whereas nifty lost 1300 points in just 2 days.
  5. BSE listed stocks lost a total of 269.7 Lakh Crore in two days

What does the Hindenburg report say?

On 25th January, Hindenburg published a report titled as 

 “Adani Group – How the world’s 3rd richest man is pulling the largest con in corporate history”. In their 106 pages document, they put up so many allegations against Gautam Adani and the Adani Group and asked some tough questions which Gautam Adani and Adani Group haven’t answered yet. They put up so many serious allegations that it is very hard to explain them in one article. Adani group has reacted to it just by saying these all allegations are misleading, unresearched and maliciously mischievous. But what are those allegations?

Hindenburg has put up the allegations of money laundering, stock market manipulation, overvaluation of the share price that is up to 85% and creating a market bubble that can pop up at any time. Hindenburg says the Adani group has taken loans by mortgaging their shares to the bank. According to Hindenburg, Adani group’s share price is 85% higher than their actual price. When they will come back to their actual price the bank will face a huge loss and Adani group will not be able to pay back their loan. In another serious allegation by Hindenburg, they stated that the Adani group has registered fake companies in foreign countries by the name of their family members to invest in his company that is in billions of dollars to manipulate the market which results in skyrocketing Adani group’s share price. According to the Hindenburg report, the number of these fake companies is in the thousands.

According to market experts Indian stock market is revolving around the Adani group for the last few years. If Adani group shares start to crash, which is already happening after the Hindenburg report, it will lead to the crash of the whole stock market and all the government banks of India. If we listen to the market expert, if this report proved to be true, it will lead to the financial crisis in India and many banks and investors will never be able to cover their losses. 

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