Adani stock rallies after move to calm investors
STORY: There was some relief Tuesday (February 7) for investors in India’s embattled Adani Group.
Shares in flagship unit Adani Enterprises surged around 15%.
Other group companies also saw strong gains.
It all came after Adani reassured investors by saying it would prepay more than $1 billion in loans.
Even so, its stocks are still nursing huge losses of around $109 billion.
They’ve tumbled since a scathing report by U.S. short seller Hindenburg Research.
It has accused Adani of wrongdoing including share price manipulation and the inappropriate use of offshore tax havens.
The events have sparked turmoil in India’s parliament and on the streets.
This week saw protesters demand an inquiry into the allegations against the firm.
Some have accused the government of protecting the company and its billionaire founder, Gautam Adani.
Opposition lawmakers and others have demanded to know how much state-backed banks and insurers have put into the firm.
Adani says the allegations against it are baseless, and it has complied with all laws and disclosure requirements.