The US-based short-seller accused Buch and her husband of holding stakes in offshore entities allegedly linked to the Adani Group, implying that this connection may explain SEBI’s perceived inaction against the conglomerate amid earlier claims of stock manipulation.
However, seasoned market experts like Sudip Bandyopadhyay and Sunil Subramaniam have downplayed the potential impact of these allegations on Adani Group stock and the broader market.
Sudip Bandyopadhyay dismissed the Hindenburg report as an attempt to create confusion and panic in the market. “The allegations are against the SEBI chairman and have no direct implication on the fundamentals of Adani stock or the broader market,” Bandyopadhyay said. He stressed that while Adani Group stock could see a minor correction, probably not more than 3%, such fluctuations would present a strategic buying opportunity for long-term investors.
Sunil Subramaniam echoed Bandyopadhyay’s sentiments, pointing out that Hindenburg Research is aiming to incite panic among retail investors, which would trigger a price correction. Subramaniam stressed that any short-term correction caused by these allegations should be seen as an opportunity rather than a cause for concern.
“If there is a short-term correction due to these allegations, long-term investors should consider it a buying opportunity. It is a temporary reaction to an unrelated issue, which offers an opportunity to enter the market at a lower price,” Subramaniam advised.
He also noted that Hindenburg, likely having taken short positions in Adani shares in overseas markets, would eventually step in to cover its short positions, which could further stabilise the market.
Read also: Adani Group calls new Hindenburg report a ‘red herring’
The Adani Group responded by saying that its overseas holding structure is completely transparent and that the Group has no business relationship with the individuals or matters mentioned in the report.
It is worth noting that the stocks of most Adani group companies have already recovered from the significant losses incurred following Hindenburg’s initial report in January 2023. That report, which claimed to be based on two years of investigation, accused Adani Enterprises and other group companies of engaging in stock manipulation and accounting fraud over several decades.
Following the launch of the first Hindenburg According to the report, Adani Group shares suffered a sharp correction, losing nearly Rs 4 trillion of market capitalisation in just two days. Market regulator SEBI subsequently launched an investigation into the erosion of $86 billion in Adani Group shares, leading to the cancellation of Adani Enterprises’ fully-subscribed follow-on public offer (FPO).
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