The fall of the Indian giant Adani, accused of fraud, continues on the stock market

The Adani Group logo can be seen on the facade of its headquarters on the outskirts of Ahmedabad

by Chris Thomas and Aditya Kalra

NEW DELHI, Reuters investors, which brings the extent of the losses to nearly 70 billion dollars (64.2 billion euros) in market capitalization in three days.

Adani Enterprises, the flagship of the conglomerate present in mines, airports, electricity or even the media, gained 4.76% at the end of a jagged session, far from erasing the fall of 20.10 % of last week.

The Adani Group, headed by billionaire Gautam Adani, Asia’s richest man, on Sunday dismissed reports from Hindenburg Research – the fruit of two years of investigation – that the conglomerate used fictitious offshore entities in tax havens in the Caribbean in particular “with the apparent aim of generating fictitious or illegitimate turnover and diverting money from listed companies”.

Hindenburg Research, which specializes in short selling, adds in its survey, among other things, that the group’s main listed companies have “substantial debt” putting the entire structure in a “precarious financial situation”.

Gautam Adani said Hindenburg’s information was intended to allow the US-based short seller to make massive financial gains through illicit means, without providing evidence.

“All transactions we have entered into with entities that qualify as ‘related parties’ under Indian laws and accounting standards have been duly disclosed on our part,” Adani said in a 413-page statement.

The group said Thursday it was considering taking action against Hindenburg, who responded the same day saying she would welcome such a move.

State-owned life insurance company LIC, India’s largest insurer, said it was reviewing Adani’s response to scathing criticism from the US group.

“Currently a situation is emerging and we are not sure of the real situation (…) As we are a large investor, we have the right to ask relevant questions and we will certainly talk to them “, the group’s chief executive told Reuters.

Since its publication on Wednesday, Hindenburg’s investigation has led to a massive collapse of the seven listed Adani Group companies that wiped out a total of $66 billion in market capitalization.

On Monday alone, Adani Transmission and Adani Total Gas plunged 20%, Adani Green Energy 18%. Adani Power and Adani Wilmar lost 5% while Adani Ports and Special Economic Zone ended almost flat.

The collapse of the Adani titles is a crushing setback for 60-year-old Gautam Adani. The middle-class businessman’s meteoric rise has seen some shares of the conglomerate jump 1,500% in just three years, making him the third-richest man in the world. world before it was demoted to eighth place on Monday, according to the Forbes rankings.

(Reporting Chris Thomas and Aditya Kalra; with Gaurav Dogra, Bharath Rajeshwaran, Tanvi Mehta, Anshuman Daga, Aditi Shah, Jayshree Upadhyay and Anirudh Saligrama, French version Laetitia Volga, editing by Kate Entringer)

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