NEW DELHI (Reuters) – Shares of Adani Group corporations prolonged declines in Mumbai on Friday, with their market worth now greater than halved to lower than $100 billion after a essential report by a U.S. short-seller final week sparked a market rout.

Hindenburg Analysis questioned the Indian conglomerate’s debt ranges and use of tax havens. Adani known as the report baseless and stated its financials stay robust, but the following inventory market disaster has sparked broader considerations of potential systemic impression.

Lawmakers have known as for a wider probe into the matter, and sources have instructed Reuters that the central financial institution has requested lenders for particulars of their publicity to the group.

In one of many largest setbacks for Chairman Gautam Adani, the group shelved its $2.5 billion share sale on Wednesday which might in any other case have taken place on the peak of the rout.

In Friday commerce, the share value of Adani Enterprises Ltd – the group’s flagship firm – nosedived 35% to its lowest degree since March 2021. That took losses to almost $33.6 billion since final week representing a 70% decline.

Adani Ports and Particular Financial Zone Ltd was down 14%, whereas Adani Transmission Ltd and Adani Inexperienced Power Ltd slumped 10% every. Adani Whole Gasoline Ltd – a three way partnership with France’s TotalEnergies SE – fell 5%.

“Contagion considerations are widening, however nonetheless restricted to the banking sector. Focus stays on additional dangers of index exclusions,” stated Charu Chanana from Saxo Markets in Singapore.

On Thursday, S&P Dow Jones Indices stated it could take away flagship agency Adani Enterprises Ltd from extensively used sustainability indices on Feb. 7, making the shares much less interesting to environment-conscious buyers.

“One of many large threat elements to look at for now’s if extra indices take away Adani shares,” stated Chanana. “This may end up in international outflows as funds promote Adani shares, additional aggravating confidence points.”

Hindenburg in its report stated key listed Adani corporations had “substantial debt” and that shares in seven Adani listed corporations have an 85% draw back resulting from what it known as sky-high valuations. It additionally alleged inventory manipulation.

The Adani Group stated the allegation of inventory manipulation had “no foundation” and stemmed from ignorance of Indian legislation. Its response said that over the previous decade, group corporations have “constantly de-levered”.

In whole, the seven listed Adani Group corporations now have a market capitalisation of $99 billion, versus $218 billion earlier than the Hindenberg report.

The meltdown in share costs marks a dramatic flip of fortune for Adani, who in recent times solid partnerships with, and attracted funding from, international giants as he pursues world growth in sectors as various as ports and energy.

Adani can be now not Asia’s richest particular person, and has slid to seventeenth in Forbes’ rankings of the world’s wealthiest folks. The 60-year-old had been third behind Elon Musk and Bernard Arnault. Indian rival Mukesh Ambani of Reliance Industries Ltd is now Asia’s richest particular person.

The costs of U.S. greenback bonds issued by Adani Group entities edged greater on Friday after diving on Thursday.

Adani Inexperienced’s bonds maturing in September 2024 gained about 7 cents to 69.69 cents, having fallen to report low of 60.56 cents on Thursday.