Adani Group Struggles To Recover From Hindenburg Report Impact

The Adani Group continues to face the repercussions of the bombshell report released by US short seller Hindenburg Research, as its stocks struggle to recover from the impact even four months later.

While two of Adani's ten stocks have firmly recovered, a full recovery to pre-Hindenburg levels appears to be a long way off. The group's market value has dropped by more than $100 billion since Hindenburg's Jan. 24 article, in which he said billionaire Gautam Adani's business was "pulling the largest con in corporate history." The route had once reached $153 billion, reported by bloomberg news.

"Adani stocks have seen a readjustment of their valuations. The froth that existed prior to Hindenburg has gone away and won't come back," said Abhay Agarwal, founder and fund manager of Mumbai-based Piper Serica Advisors Ltd. "While investors are less concerned about governance issues at the group now than they were in the aftermath of the Hindenburg report, it is unlikely to erase all the losses over the next three, six or even 12 months."

Over a four-month period, the median decrease in ten Adani stocks is 23%. This is more than a 19% median fall for shares of certain other big businesses targeted by Hindenburg since 2020, including Adani.

Adani has fiercely refuted Hindenburg's charges, claiming that it is completely complying with local regulations requiring disclosure. Much of the resurgence of Adani equities can be traced to Rajiv Jain, chief investment officer at GQG Partners LLC and a well-known emerging-market investor.