The Adani Group experienced the worst stock market meltdowns in the recent past after Hindenburg Research accused it of committing the biggest corporate fraud in history.
Stocks of the company were sinking with the Adani name and position.
However, all that was before a Rs 15,000 crore investment by GQG Partners, and today, the value of Adani’s stocks increased by almost 100% in a week.
Adani Share Buyers at a 52-week low Get a 2-fold Return
By the end of February 2023, Adani’s stock had fallen to its 52-week low prior to the investment from Sanjiv Jain’s US-based fund. But as more investors were attracted to the stake sale amid a sell-off, Adani Enterprises rose by 95%, followed by Adani Ports, which increased by 75%.
Jain previously referred to the opportunity to purchase Adani at its lowest point as one that arose from the crisis, and the same must be true for those who chose to purchase the stocks that the majority of investors were selling.
The five-day winning streak has nearly doubled the size of those investments at a time when Adani stocks appear to be flying off the shelves like hotcakes. The rally is anticipated to last for some time, and Jain expressed confidence that the Hindenburg saga will be forgotten, but for the rest, it was a missed opportunity.
He even used Infosys as an example, which experienced a 40% market value decline following a whistleblower crisis but later recovered investor confidence.
Hindenburg Research’s Allegations Against Adani
Following the publication of the Hindenburg Research report on alleged misconduct, Gautam Adani’s corporate empire, which he once controlled as the second-richest person in the world, has been severely damaged.
The selloff at ten Adani group companies, including Adani Total Gas, Adani Enterprises, Adani Transmission, and Adani Ports, at one point, reduced the combined market value of those companies by $117 billion, forcing the tycoon to increase the value of the shares he pledged as collateral for loans.
According to Hindenburg Research, a web of Adani family-controlled offshore shell companies in tax havens were used to facilitate money laundering, tax fraud, and corruption. The conglomerate described the report as “bogus” and vowed to sue. Adani claimed that the company’s balance sheet is sound in a video speech he gave last week.
