January 27, 2023: Trading in the business empire of Asia's richest man, Gautam Adani, was halted on Friday following a 15% plunge in its share price, days after a US investment firm, Hindenburg Research, claimed it had committed "brazen" corporate fraud.
Adani Enterprises, the flagship company of Adani Group, tumbled to 508.45 rupees ($6.23) in Mumbai, triggering an automatic 105-minute trading halt, while subsidiary Adani Total Gas also halted after it tanked 20%.
Hindenburg Research this week alleged in a report that Adani Group had used undisclosed related-party transactions and earnings manipulation to "maintain the appearance of financial health and solvency" of its listed business units.
Adani Group denied these allegations, calling them a "maliciously mischievous" reputational attack, and said they are exploring legal action against Hindenburg in the US and Indian courts.
The report comes as Adani Group is preparing for a major fundraising round.
