The Adani-Hindenburg saga has no bounds currently, and this time the US short seller has taken a jibe at Indian billionaire Gautam Adani-backed power-to-port conglomerate with claims that about $310 million funds in various Swiss bank accounts have been frozen by the Swiss authorities. Adani Group has denied the latest allegations. On Friday, September 13, Adani Group stocks showed mixed reaction to the new development.
Adani Stocks On September 13, 2024:
After falling by over 1.1% in early trade of BSE, the flagship company Adani Enterprises recovered early losses and is trading at Rs 2988.30 apiece marginally down. The stock did touch Rs 3,000 mark for a brief moment before correction.
On the other hand, Adani Ports traded near its day's low of Rs 1460 apiece, to Rs 1463.75 apiece down by Rs 8.50 or 0.6%. Meanwhile, Adani Power dipped as much as 2% with an intraday low of Rs 638 apiece in early trade, and continues to be bearish.
Further, energy stocks of the conglomerate namely, Adani Green Energy fell by 0.7% to hit an intraday low of Rs 1795.60 apiece, while Adani Energy Solutions tumbled by 1.7% to touch the day's low of Rs 990.70 apiece.
Additionally, Adani Total Gas was broadly flat at Rs 805.95 apiece, after marginally dipping in early trade. Adani Wilmar made a turnaround from its 0.75% drop in opening bell, to trade at Rs 365.70 apiece up by nearly 1%.
Media stock NDTV surged by over 1.12% to trade at Rs 194.55 apiece, while cement stocks ACC and Ambuja Cement are also up by 1.3% and 0.5% currently.
Gautam Adani Swiss Bank Allegations:
Hindenburg via its X handler threw new allegations on Adani Group. The short seller said, "Swiss authorities have frozen more than $310 million in funds across multiple Swiss bank accounts as part of a money laundering and securities forgery investigation into Adani, dating back as early as 2021."
The short seller added, "Prosecutors detailed how an Adani frontman invested in opaque BVI/Mauritius & Bermuda funds that almost exclusively owned Adani stocks, according to newly released Swiss criminal court records reported by the Swiss media outlet."
Adani Group has denied the latest allegations. The conglomerate called the accusations baseless and denied any involvement in Swiss court proceedings.
"We unequivocally reject and deny the baseless allegations presented. The Adani Group has no involvement in any Swiss court proceedings, nor have any of our company accounts been subject to sequestration by any authority," Adani spokesperson said in a statement.
Furthermore, Adani's spokesperson added, "Even in the alleged order, the Swiss court has neither mentioned our group companies nor have we received any requests for clarification or information from any such authority or regulatory body. We reiterate that our overseas holding structure is transparent, fully disclosed, and compliant with all relevant laws."
Adani-Hindenburg's saga escalated like wildfire in January 2023, after the short seller accused the group of brazen stock manipulation and other frauds. The matter is heard by the Supreme Court with investigations carried out by SEBI. So far, Adani has overcome the over $100 billion rout that took place between January and February 2023, and instead outperformed benchmarks and emerged as foreign investors darling.
Earlier to the Swiss bank buzz, Hindenburg had also roped in Sebi to the feud, accusing India's market regulator and its chairperson Madhabi Buch of having close ties with Adani including holding a multi-layered offshore fund structure with minuscule assets. Sebi and Adani have denied this allegation too.
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