Adani Total meets Hindenburg’s predicted valuation with 85% plunge in stock

Nine months after the US short-seller Hindenburg Research flagged an 85% downside in Adani shares, Adani Total Gas Ltd. has become the first of the group's seven listed companies to achieve that valuation.

The shares of the conglomerate's city-gas distributor slid as much as 2.6% to 575.7 rupees on Monday, taking losses from their Jan. 24 closing of 3,891.75 rupees to 85%.

While shares and bonds of some Adani companies have since recovered, particularly after the ports-to-power group received investments from GQG Partners, Adani Total Gas remains the hardest hit. The latest headwind for the company is the policy announced by New Delhi's state government seeking mandatory conversion of all commercial vehicles to EVs by 2030. Its shares have lost about 6% this month.

Hindenburg Research in its January 24 report alleged wide-ranging corporate malfeasance against the conglomerate that led to a market value erosion of more than $150 billion at one point. The Adani Group has denied all wrongdoing. An interim report from an Indian Supreme Court-appointed panel in May said it found no evidence of stock-price manipulation.