Adani Total Gas First Group Stock to Hit 85% Lower Valuation Predicted by Hindenburg
Amid rising serious allegations, US short seller Hindenburg Research predicted an 85% fall in Adani shares. Nine months later, Adani Total Gas Ltd. has become the first share in the group to reach that valuation, with its 2.6% plunge on Monday. Adani Total Gas shares have now dipped 85% from their Jan. 24 closing of Rs 3891.75.
The city gas distribution company”s stock has remained the hardest hit, while majority of the group”s shares have recovered from their chaos with the help of investments earned from foreign institutional investors (FIIs), especially US-based GQG Partners. The latest headwind affecting Adani Total Gas”s share price is the New Delhi state government”s mandatory call for converting all commercial vehicles to electric vehicles (EVs) by 2030. This caused the stock to plunge 6% this month.
US-based Hindenburg”s report published in January 2023 alleging “brazen accounting fraud” and “stock manipulation” had rattled the Gautam Adani-led group. However, the conglomerate refuted the allegations as “unresearched” and “maliciously mischievous.” Nevertheless, the accusations caused Adani Group stocks to face a massive setback, losing over $140 billion in market capitalization. The group was also compelled to cancel Adani Enterprise”s 20,000 crore offer for sale (OFS).
