Shares of India’s Adani Group extended declines on Friday to take their market losses to $115 billion amid growing concern about any systemic impact from disarray triggered by a U.S. short-seller report critical of the group’s finances.
Spooked investors have dumped stocks of seven of the group’s listed stocks since Hindenburg Research last week questioned the group’s debt levels and use of tax havens.
Lawmakers have since called for a wider probe into the matter, and sources have told Reuters that the central bank has asked lenders for details of their exposure to the group.
In one of the biggest setbacks for chairman Gautam Adani, the group shelved its $2.5 billion share sale on Wednesday which would otherwise have taken place at the height of the rout.
In Friday trade, the share price of Adani Enterprises Ltd (ADEL.NS) – the group’s flagship company – plunged 30% to its lowest since April 2021, taking losses to nearly $33 billion since last week. Since the Hindenburg report, the stock has lost 68%.
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