Adani Group Plummets After Hindenburg Research Accusations, SEBI Investigates

On January 24, US-based short seller Hindenburg Research accused the Adani Group of financial irregularities, triggering a stock rout and wiping out $127 billion off the group’s market value.[0] The personal fortune of Gautam Adani, the founder and chairman of Adani Group, has dropped sharply from its peak at $150 billion last September and is currently estimated at $55.8 billion according to the Bloomberg Billionaires Index.[1]

The Securities and Exchange Board of India (SEBI) is “enquiring into both the allegations made in the Hindenburg report as well as the market activity immediately preceding and post the publication of the report, to identify violations of SEBI regulations”, the regulator said in a filing to India’s supreme court seen by CNN.[2]

An Adani Group spokesperson told CNN that the balance sheet of each of its independent portfolio companies is “very healthy” and “our business plan is fully funded”, and expressed confidence in the continued ability of the portfolio to deliver superior returns to shareholders.[3]

The 60-year-old founder is aiming to address investor concern by improving oversight of the companies that control his business empire.[4] According to Bloomberg News, the conglomerate has halved its revenue growth target and plans to hold off fresh capital expenditure following the Hindenburg jolt.[0]

It is unlikely that the dramatic fall in the Adani Group’s shares will spill over to other Indian conglomerates as they fare well on key business parameters, according to Bloomberg Economics.[5] On Tuesday, shares of many of the listed firms controlled by the conglomerate slid again in Mumbai, with Adani Enterprises rising 1.9%, while Adani Transmission, Adani Total Gas, Adani Power and Adani Total saw 5% falls.

The Adani Group is currently being investigated by India’s market regulator, which is looking into the explosive allegations made by US short seller Hindenburg Research.[6] The group has denied the claims made in the January 24 report. The fate of the Adani Group, and its potential impact on India’s economy, remains uncertain.[7]

0. “Apple, Amazon, Walmart: Adani Group Is Trading At Higher Valuations Than These Companies Despite Market Rout” Yahoo! Voices, 13 Feb. 2023,

1. “Adani Group Crisis Highlights India’s Need for Diversified G…” MENAFN.COM, 13 Feb. 2023,

2. “Adani Group tries to calm market, says balance sheet of companies ‘very healthy’ | Mint” Mint, 14 Feb. 2023,

3. “Adani crisis costs investors ₹10 tn | Mint” Mint, 13 Feb. 2023,

4. “Adani Crisis Likely to Leave India’s Conglomerates Unscathed” Financial Post, 14 Feb. 2023,

5. “The Dramatic Fall in the Adani Group’s Shares After Hindenburg Research Allegations is … – Latest Tweet” LatestLY, 14 Feb. 2023,

6. “India’s market regulator is looking into the explosive allegations against Adani Group”, 14 Feb. 2023,

7. “Here’s what happened with Adani — and what the fallout could be for India’s economy” NPR, 10 Feb. 2023,