Troubled Adani Group, India’s second-biggest conglomerate, compounded losses as its flagship company’s shares plunged another 25%.
The fiasco, which led Adani Enterprises, the group’s flagship company, to cancel a share offering aimed at raising $2.5 billion, sparked calls for regulators to investigate after Hindenburg Research, a U.S. short seller, released a report which alleged that the group engaged in market manipulation and fraud. Dr. Adani’s practice denies these accusations.
Opposition MPs suspended parliament for a second day on Friday, chanting slogans and demanding an investigation into the dealings of coal magnate Gautam Adani, who is said to have close ties to Prime Minister Narendra Modi.
Shares of Adani Enterprises fell 30 percent to Rs 1,017 ($12) on Friday before rebounding and falling about 15 percent.
The company’s share price has fallen about 66 percent since Hindenburg published its report last week, when it hit Rs 3,436 ($41). Shares of six other Adani-listed companies fell 5-10% on Friday.
Adani, who made a huge fortune in coal mining and trading before moving into construction, power generation, manufacturing and media, was the richest man in Asia and the third richest man in the world before the problems with the Hindenburg Report began.
Source: AP
