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: Adani Group shares slump after report of U.S. probe into communications with investors

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 512599, -6.79% fell 7%, as other listed Adani companies including Adani Power 533096, -5.61% 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.

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