Most Adani Group stocks dropped on Wednesday, extending losses to $72 billion after a short-seller report criticised the conglomerate and despite the group completing a closely watched share sale a day earlier.

Hindenburg Research’s report last week alleged improper use of offshore tax havens and flagged concerns about high debt. It added that shares in seven Adani-listed companies have an 85 per cent downside due to what it called “sky-high valuations”.

The group, led by Gautam Adani, one of the world’s richest people, had denied the allegations and called them baseless, adding that it has always made necessary regulatory disclosures.

Investors have, however, dumped shares in the aftermath of the report which has become one of the billionaire’s biggest business and reputational challenges.

“There was a slight bounce yesterday after the share sale went through, after seeming improbable at a point, but now the weak market sentiment has become visible again after the bombshell Hindenburg report,” said Ambareesh Baliga, a Mumbai-based independent market analyst.

“With the stocks down despite Adani’s rebuttal, it clearly shows some damage to investor sentiment. It will take a while to stabilise,” Baliga added.

On Wednesday, Adani Enterprises lost two per cent and Adani Transmission slipped 3pc. Adani Power fell pc, while Adani Total Gas slumped 10pc, down by its daily price limit.

Adani Total Gas, a joint venture between France’s energy major Total and Adani Group, has been the biggest casualty of the short seller report, losing about $27bn in value since last Wednesday.

Adani Enterprises had bounced over the last two sessions as the group mustered support from investors to haul the flagship firm’s share sale over the line on the last day of sale. The company has still lost over $7bn in value.

Hindenburg said in its report it had shorted US bonds and non-India traded derivatives of the Adani Group.