These days there is a huge crisis on the shares of Adani Group companies. The reason for this is the report of an American research company. If the allegations made in the report are found to be true, then Adani Group will have to pay a heavy price for it.
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Adani Group Hindenburg Report Crisis: Adani group is surrounded by crisis these days. A report by America’s finance research company Hindenburg Research has created panic in the stock market and due to this, there is a huge fall in the shares of the company’s listed companies. In its report, the research company has accused the Adani Group of wrongly increasing the share price of its companies and making irregularities. If these allegations against the company prove to be true, then the group will have to pay a huge price for it.
Indeed Index Service Provider MSCI Said on Saturday that in relation to the report of Hindenburg Research, it has sought feedback regarding the shares of Adani Group. He is aware of this report regarding the working practices of the Adani Group and its companies and is closely monitoring the information available in public forums in this regard.
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Adani Group will have to pay this price
MSCI is a global index service provider. He says that if the allegations against the Adani group are proved to be true, then MSCI Global Investable Market Indices But the weightage of group companies may be less. Or they can also be excluded from it. MSCI continues to monitor all factors that will affect the valuation of the relevant Adani Group Shares.
MSCI says that it welcomes the feedback of market participants in this matter. This will be achieved in a given time. Currently 8 companies associated with Adani Group MSCI Standard Index are part of.
Selling in Adani shares may increase
If MSCI takes any such step regarding the shares of Adani Group, then the selling in the shares of group companies may intensify. Since the arrival of the Hindenburg Research report, there has been a huge decline of Rs 4.17 lakh crore in the market capitalization of Adani Group in just two trading days.
However, experts feel that MSCI will not take any such step until the feedback from the market participants regarding Adani Group and its review process is completed.
Hindenburg Research report sneak peek
America’s ‘activist’ investment research firm Hindenburg Research has said in a report that Adani group companies have adopted wrong methods to increase share prices. Apart from this, allegations of fraud in accounting on group companies have also been made in the report. This report has come just before the follow on public offer (FPO) of Adani Enterprises, the representative company of Adani Group. It has created panic in the stock market. Adani Group’s company aims to raise Rs 20,000 crore through FPO.
Although the Adani group has rejected this report. He says that it has been issued for the purpose of harming his FPO with wrong intention. Along with this, she is also considering trying the legal option.
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