Mumbai, 7/6: About four months after US short seller Hindenburg Research shook Indian financial markets with a bombshell report on the Adani Group, the conglomerate’s stocks are finding it hard to shake off the impact.
While two of Adani’s 10 stocks have bounced back strongly, a full recovery to pre-Hindenburg levels looks a ways away. The group’s market value is still down more than $100 billion since Hindenburg’s Jan. 24 report, which claimed that billionaire Gautam Adani’s empire was “pulling the largest con in corporate history.” The rout had reached $153 billion at one point.
Adani stocks have seen a readjustment of their valuations. The froth that existed prior to Hindenburg has gone away and won’t come back,” said Abhay Agarwal, founder and fund manager at Mumbai-based investment firm Piper Serica Advisors Ltd. “While investors are less concerned about governance issues at the group now than they were in the aftermath of the Hindenburg report, it is unlikely to erase all the losses over the next three, six or even 12 months.”
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