Adani group has hired a U.S based law firm, Wachtell in its battle against Hindenburg Research.
According to a Financial Times report, senior lawyers at the law firm will advise it on how to step the crisis facing the conglomerate since Hindenburg accused it of accounting fraud and stock price manipulation. Accusations which Adani group completely denied in a 400 page rebuttal, calling them baseless and discredited. However, since Hindenburg's report came out, the Adani group has seen a massive erosion in market capitalisation.
As per the Financial Times, ''Wachtell, Lipton, Rosen and Katz, is one of the most expensive law firms in the U.S and has been one of the most sought after advisors by besieged corporate boards at some of the largest US companies trying to fend off activist investors or hostile takeovers.''
Meanwhile, MSCI said that that they would reduce the amount of freely tradable shares of the group, with a cut in the weightings of 4 Adani stocks. In addition to Adani enterprises, MSCI will also reduce the weighting of Adani Total Gas and Adani transmission. These changes will be effective 28th of February. This development led to another fall in the Adani group stocks.