ADANI Group got big relief from NSE. | Now Adani will fight a legal battle against Hindenburg Research Firm.

 

ADANI Group got big relief from NSE!

After coming under the scrutiny of SEBI, there has been news of great relief for the shares of Adani Group. There is good news for two stocks of Adani Group. After a long time, good news has come for the Adani group. Now let's try to understand the whole news in detail. Adani Port and Ambuja Cement, two companies of Adani Group, got a big relief from NSE. 

Both these companies were removed from the ASM framework by NSE. What does ASM stand for? On January 24, after the report of American short seller firm Hindenburg, Adani Group's shares were broken by 70%. Many sensational allegations were made in this report. After the arrival of this report, there was a lot of movement in the shares of the Adani Group. 

Lower circuits were taking place every day. For this reason, Adani Group shares were placed in the ASM category to reduce price volatility in NSE. Now know what is this ASM category. ASM stands for Additional Monitoring Measures. It is a monitoring measure. Whenever sharp volatility is observed in a stock, NSE starts additional monitoring of the stocks for the benefit of the investors i.e. to protect their interest.

Investors have to pay an upfront margin of 100% for intraday trading in these shares after the shares are listed in the ASM category. Let us tell you, after putting stock in the ASM category, sharp fluctuations in the shares are prevented. Moreover, the apprehensions about betting in the stock market are also reduced. Now know which Adani Group's shares were put in such a category. 

NSE had put three shares of Adani Group in the ASM category in early February after a massive sell-off in Adani Group's shares after January 24. NSE had placed Adani Enterprises, Adani Ports, and Ambuja Cement under the ASM framework. 

Now out of these three shares, two shares have been removed by NSE from the ASM framework. That is, Adani Ports and Ambuja Cement were taken out of the ASM framework. Let me tell you, Adani Enterprises is yet to get relief from this.

Now Adani will fight a legal battle against Hindenburg Research Firm.

The Hindenburg has given a strong blow to the Adani group. Adani group has started preparations for a big legal battle against the owner of Hindenburg research. Yes, Adani will fight this legal battle against Hindenburg Research founder Nathan Anderson in America only. 

It is reported that Adani Group has hired America's big law firm Wachtell for this. We are going to tell you the complete news. Gautam Adani has launched a legal battle to teach a lesson to those who disturb his business. A legal battle will be fought against Bob's claims. Gautam Adani has hired a law firm. 

It is considered one of the largest law firms on Wall Street. Wachtel, Lipton, Rosen & Katz, is considered one of America's inexperienced and most expensive firms. Out of this, Adani has appointed Wachtel as legal advisor which will soon initiate legal proceedings. Adani Group wants to assure its investors about the financial health of the companies by fighting the case with Hindenburg research. 

On January 24, Hindenburg Research submitted a report regarding the group. In the report, big allegations ranging from money laundering to share manipulation were made about the group. After the report, there was a huge fall in the shares of the group and there was an outcry in the market. 

Meanwhile, the Supreme Court is also hearing two PILs related to Hindenburg filed against Adani. The petition sought a court-monitored probe. The petition, filed by advocates ML Sharma and Vishal Tiwari, claims that the report issued by US-based Hindenburg for the Adani Group caused huge losses to investors. 

Petitioner Vishal Tiwari said that the Hindenburg report tarnished the image of the country. It is affecting the economy. M.L Sharma's petition claimed that the media hype over the report influenced the markets. Bob and Nathan Anderson also failed to provide proof of his claims to the Indian regulator SEBI. 

Talking about the latest market situation regarding the Adani group, there is a mixed trend of shares. Out of 10 shares of the group, 4 are up and 6 are down. Shares of Adani enterprises are down, but transmission, Adani total gas, and Adani Green's shares saw a decline, while Adani Wilmar shares showed a boom.

Gautam Adani's biggest reply to Hindenburg

The crisis that has arisen since the Hindenburg report has eroded the market cap of billions of dollars of the Adani Group. The market cap of the entire group has come down by about $ 120 billion. For this, Adani Group took several steps so that the confidence of the investors could be restored and the sharp fall in the shares could also be stopped. 

Now took the biggest step in this episode. Adani Group has appointed the accountancy firm Grant Thornton to conduct an independent audit of some of its companies. Hindenburg's report also raised questions about the work of those companies and in this, the ratings of some companies were questioned. 

One of the names of Hindariya and company also came in these, which used to do the further rating of the accounts of Adani group. Questions were also raised regarding this. Not only the shares of this group, but the bond prices also crashed completely. In Hindenburg's report, many serious allegations like manipulation of share prices, money laundering, and accounting fraud were made.

Gautam-led Adani Group has denied all these allegations outright and said that all the allegations leveled against them are baseless. However, the concerns of the investors cannot be removed. In just three weeks, the shares of Adani Group companies would have come down by 70%. 

If seen based on the closing price next Monday i.e. February 13, 2023, the shares of Adani Enterprises, the flagship company of Adani Group, have declined by 50.10% since January 14. The decline in Adani Port is 27%. Ambuja Cement 31.37%, Adani Wilmar 27.69%, Adani Total Gas 69.35%, Adani Green Energy 64.10%, Adani Transmission 59.19%, Adani Power 43.20%, NDTV 30.25% and ACC 21.94%. 

There is a decline. Adani Group has also taken several major steps in the recent past to restore investor confidence. Last week it was reported that Hindenburg is exploring the option of suing in the US court to challenge the research and Adani Group is in talks with US law firm Wachtell, Lipton, Rosen, and Katz for this. 

Not only this, recently Adani Group has repaid loans worth $1.11 billion ahead of time. If the shares were raised by pledging, these loans were raised by pledging shares of three Adani Group companies. The Adani group has tried to prove that it can repay these loans by prepaying them and issuing shares. 

It is believed that the company may also appoint a senior auditor to give a befitting reply to the allegations of Hindenburg regarding counseling and monitoring and the appointment of Grant Thornton can be seen in this context.