According to Bloomberg, a trader who sold $1 million in Adani Enterprises shares at the open on Feb. 1 and bought them back at the end of the day after the record drop would have made about $280,000, excluding fees and transaction costs.
Hindenburg Research’s decision to only short Adani Group securities outside of India has highlighted the country’s limitations as well as the peculiarities of the business empire itself.
The Indian government has imposed a slew of restrictions on short selling, including requiring institutional investors to notify the stock exchange of planned trades before they are executed and requiring retail counterparts to close positions every day.
Adani-Hindenburg: A lot has changed for the ports-to-power conglomerate in the days since US-based short seller Hindenburg Research released its damning report accusing the Adani Group of companies of stock manipulation and misusing tax havens.
- Adani Group’s combined market capitalization loss exceeds Rs 9.5 lakh crore.
- The most significant side effect is the cancellation of Adani Enterprises’ FPO.
- Second, the market capitalization of Adani Group’s listed companies continues to fall.
- Third, Gautam Adani is no longer among the top 15 richest people in the world.
- Fourth, the SEBI has begun an investigation into Hindenburg’s allegations.
- Fifth, the Reserve Bank of India has requested information on all loans made to Adani Group.
- The sixth side effect is that Credit Suisse, a global investment bank, has reduced the value of Adani Group’s bonds to zero.
