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.