Adani Group shares slump after report of U.S. probe into communications with investors
By Steve Goldstein
Shares of Adani Group companies slumped on Friday after a report the U.S. Justice Department and the Securities and Exchange Commission were examining the company's communications to investors.
Shares of the flagship Adani Enterprises fell 7%, as other listed Adani companies including Adani Power fell as well.
Bloomberg News reported, citing a person familiar with the matter, that the U.S. Attorney's office in Brooklyn has asked institutional investors with large holdings in the India conglomerate about the company's communications to them after a short-seller report was released The same report cited two people as saying the SEC also has a similar inquiry under way. Adani Group said it is not aware of any subpoenas to its investors, according to Bloomberg.
Adani Group shares have slumped since the short-selling firm Hindenburg Research said it used offshore companies to inflate its share price -- allegations the company has repeatedly denied.
Last month, a panel convened by India's Supreme Court said in a preliminary report that it has not found evidence that Adani companies have been manipulated abroad, while it did say that the market regulator suspects wrongdoing.
The cumulative market-cap losses for Adani Group companies have been about $114 billion since the Hindenburg report was first released.
-Steve Goldstein
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
06-23-23 0959ET
Copyright (c) 2023 Dow Jones & Company, Inc.-
Never Mind Market Efficiency: Are the Markets Sensible?
-
Starbucks Stock Could Use a Pick-Me-Up After Big Selloff; Is it a Buy?
-
5 Cheap Stocks to Buy From an Attractive Part of the Market
-
Markets Brief: All Eyes On Inflation
-
5 Things We Learned From the Q1 Earnings Season
-
After Earnings, Is Palantir Stock a Buy, a Sell, or Fairly Valued?
-
What’s Happening In the Markets This Week
-
Can the Fed Declare Victory on Inflation?
-
After Earnings and a 56% Rally In 2024, Is Arm Stock a Buy, a Sell, or Fairly Valued?
-
How Morningstar Rates Stocks
-
After Earnings, Is Disney Stock a Buy, a Sell, or Fairly Valued?
-
Home Depot Earnings: Macro Factors Pinch Demand, but Long-Term Outlook Intact
-
Tariffs On Chinese EVs Offer US Automakers a Chance to Capture Demand
-
The Best REITs to Buy
-
3 Hot Stocks to Buy That Still Look Undervalued
-
After Earnings, Is Eli Lilly Stock a Buy, a Sell, or Fairly Valued?