Shares of Adani Group companies faced heavy selling pressure for the second straight session on Friday, January 27, with shares of Adani Ports and Special Economic Zone falling as much as 15%, Adani Enterprises dropping 10%, and Adani Power, Adani Wilmar, Adani Total Gas, and Adani Transmission locked in at 5% and 20% lower circuits, respectively. The fall in share prices was triggered by a report by forensic financial research firm Hindenburg Research, which alleged fraud by the Adani group.

The report, which came after two years of research and investigation, said that the Adani group has engaged in stock manipulation and accounting fraud, and that the group’s founder, Gautam Adani, has amassed a net worth of nearly $120 billion largely through stock price appreciation over the last three years. It also alleged that the group’s six key listed companies have spiked at an average of 819% over the entire period.

The news of Adani group’s shares crashing came just as Adani Enterprises’ Rs 20,000 crore follow-on-public offer (FPO) opened for subscription on Friday. Ahead of the FPO, the company raised close to Rs 6,000 crore from anchor investors. However, Adani Enterprises shares dropped below its FPO price band of Rs 3,112-3,276 per share, igniting fears that the FPO might not go through, according to analysts.

In response to the Hindenburg report, Adani group stated that it is examining legal options to take “punitive action” against Hindenburg Research for their “reckless” attempt to sabotage a share-sale at the conglomerate’s flagship firm. Hindenburg Research, on the other hand, has stated that it stands by its report and that any legal action taken against the organisation will be “meritless”.