Hindenburg effect: Adani Wilmar shares stuck in lower circuit; down 15% in three sessions

Shares of Adani Wilmar were stuck in the lower circuit in early trade, falling for the third straight session today after a report by Hindenburg Research alleged accounting frauds, stock manipulations and money laundering by the Adani Group. Adani Wilmar shares crashed 5 per cent to Rs 491.45 amid positive sentiment in the broader market today.  The stock has lost 15% in the last three sessions. Market cap of Adani Wilmar plunged to Rs 63,872 crore. The stock opened 5% lower on BSE. Adani Wilmar stock is trading lower than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages. With today’s fall, the stock is down 20.43 percent in 2023.

A total of 4.36 lakh shares of the firm changed hands, amounting to a turnover of Rs 21.43 crore on BSE.

In an exclusive interview to Business  Today, the Adani Group has accused Hindenburg Research of not doing proper research, and “copy-pasting” from the company disclosures. It also said that they either did not do proper research or did proper research but misled the public. Adani Group Chief Financial Officer Jugeshinder Singh told Managing Editor, Business Today Television, Siddharth Zarabi. Hindenburg needs to be questioned why they misrepresented in the questions they asked Adani Group in their report, Singh said.

A report by Hindenburg Research alleging accounting frauds, stock manipulations and money laundering last week led to negative sentiment around the Adani Group stocks in the last three sessions. Adani Group called Hindenburg's report as maliciously mischievous and unresearched, which, it said, adversely affected the Adani Group, its shareholders and investors.

Adani Group had said that the timing of the Hindenburg report’s publication clearly betrays a brazen, mala fide intention to undermine the group’s reputation with the principal objective of damaging the follow-on public offering from Adani Enterprises, which is the biggest FPO ever in India.

Meanwhile, Sensex was trading 52 points or 0.08 per cent higher at 59,382 and Nifty gained 47  points at 17,651 at 9.56 am today.

 
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