Adani Group in a statement Wednesday afternoon dismissed U.S. short seller Hindenburg Research’s report that laid widespread allegations of fraud and malpractice against the conglomerate as “malicious.”

What Happened: The group led by India’s richest businessperson Gautam Adani said Hindenburg published the report without making any attempt to contact the company or “verify the factual matrix.”

Adani Group’s chief financial officer Jugeshinder Singh said in a statement the company was “shocked” and dubbed the report a “malicious combination of selective misinformation and stale, baseless and discredited allegations that have been tested and rejected by India's highest courts.”

Why It Matters: Hindenburg said it sees 85% downside to the seven key publicly-listed stocks of Adani Group, purely on fundamental basis — even if its latest research was to be sidelined.

The activist short seller went after Adani’s companies over high debt, appointment of relatives facing regulatory probe to top positions within the conglomerate and — among other things — alleged existence of shell companies in a scathing report.

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 1.5% lower at ₹3,391.00.
• Adani Green Energy shares traded 3.26% lower at ₹1851.15.
• Adani Ports & Sez saw shares crash 5.61% to ₹718.20.
• Adani Power shares slumped 4.71% to ₹261.85.
• Adani Total Gas shares were down 4.37% ₹3,715.65.
• Adani Wilmar shares were down 4.88% at ₹545.20.
• Adani Transmission shares were down 4.84% at ₹2,622.80.

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