The publicly-listed companies of the conglomerate run by India's richest person Gautam Adani are seeing a rough day at the bourses amid a short seller report.

What Happened: Adani Group's publicly-listed stocks are slumping after Hindenburg Research in a report on Wednesday alleged Adani of "pulling the largest con in corporate history."

Hindenburg laid serious allegations against India's top businessperson, including the existence of various offshore shell companies.

The U.S. activist short seller also criticized the conglomerate for having several of Gautam Adani's relatives hold key leadership positions, despite regulatory probes against them.

See Also: Top 10 Richest People In India In January 2023

Hindenburg alleged Gautam Adani's younger brother was named the group's managing director despite facing regulatory probe into his alleged participation in a diamond trading import/export scheme circa 2004-2005.

It also alleged he has faced separate allegations related to customs tax evasion.

Disclosing that it had taken a short position against Adani's companies, Hindenburg said — even keeping aside its findings related to problems with the companies — the seven key publicly-listed companies of Adani Group have at least 85% downside "purely on a fundamental basis."

It said the stocks trade at unjustified "sky high" valuations.

Why It Matters: Adani has risen to become the world's fourth richest person, surpassing the likes of Microsoft co-founder Bill Gates and legendary investor Warren Buffett.

Several of the group's stocks, including Adani Enterprises and Adani Green, have turned multibaggers, giving returns in multiples for the investors.

Adani isn't the first billionaire Hindenburg has gone after. In May, Hindenburg revealed a short bet against Twitter after Elon Musk — who was the world's richest person at the time — agreed to pay to take the social media company private.

Price Action: This is how prominent Adani Group shares traded in the early hours of Wednesday on the Bombay Stock Exchange:

• Adani Enterprises shares traded 2.18% lower at ₹3,367.55.
• Adani Green Energy shares traded 1.85% lower at ₹1878.15.
• Adani Ports & Sez saw shares crash 5.15% to ₹721.70.
• Adani Power shares slumped 4.06% to ₹263.65.
• Adani Total Gas shares were down 3.5% ₹3,748.20.
• Adani Wilmer shares were down 4.6% at ₹546.75.
• Adani Transmission shares were down 3.5% at ₹2,667.80.

Read Next: Cafe Coffee Day Parent’s Stock Slumps 3% As SEBI Slaps ₹26-Crore Fine