India's Adani Group in crisis

[MenInG]

Is this the same Adani Group?

==

More than $9bn (£7.3bn) was wiped off the fortune of companies partly owned by the world’s third-richest person, after an activist investor accused him of “pulling the largest con in corporate history”.

Shares in listed companies tied to Adani’s empire Adani Group lost $9.4bn in market value on Wednesday after short seller investment firm Hindenburg Research published a detailed investigation into accusations of “brazen stock manipulation”, “accounting fraud” and “money laundering.”

Hindenburg published its two-year investigation on Twitter early on Wednesday just 48 hours before Adani Group is due to attempt a huge stock market fundraising drive.

https://www.theguardian.com/busines...ms-lose-9bn-in-value-amid-short-seller-claims

 

[JattMaula]

Is this the same Adani Group?

==

More than $9bn (£7.3bn) was wiped off the fortune of companies partly owned by the world’s third-richest person, after an activist investor accused him of “pulling the largest con in corporate history”.

Shares in listed companies tied to Adani’s empire Adani Group lost $9.4bn in market value on Wednesday after short seller investment firm Hindenburg Research published a detailed investigation into accusations of “brazen stock manipulation”, “accounting fraud” and “money laundering.”

Hindenburg published its two-year investigation on Twitter early on Wednesday just 48 hours before Adani Group is due to attempt a huge stock market fundraising drive.

https://www.theguardian.com/busines...ms-lose-9bn-in-value-amid-short-seller-claims

Yup. Same one.

 

[MenInG]

The con adani group buying the most expensive franchise with dirty money what a circus !

Getting worse now

==

India's Adani begins record share sale as short seller triggers $44 billion rout

MUMBAI, Jan 27 (Reuters) - Shares of India's Adani Enterprises (ADEL.NS) sank 15% on Friday as a scathing report by a U.S. short seller triggered a rout in the conglomerate's listed firms, casting doubts on how investors will respond to the company's record $2.45 billion secondary sale.

https://www.reuters.com/business/in...e-while-under-short-seller-attack-2023-01-27/

 

[cricketjoshila]

Getting worse now

==

India's Adani begins record share sale as short seller triggers $44 billion rout

MUMBAI, Jan 27 (Reuters) - Shares of India's Adani Enterprises (ADEL.NS) sank 15% on Friday as a scathing report by a U.S. short seller triggered a rout in the conglomerate's listed firms, casting doubts on how investors will respond to the company's record $2.45 billion secondary sale.

https://www.reuters.com/business/in...e-while-under-short-seller-attack-2023-01-27/

This looks like a scam. A short seller writes a negative and shares go down there by helping the short seller. This short seller was most likely in trouble because of the rapid rise in Adani shares.

May be a criminal prosecution and the short seller being banned from the markets is solution.

 

[MenInG]

This looks like a scam. A short seller writes a negative and shares go down there by helping the short seller. This short seller was most likely in trouble because of the rapid rise in Adani shares.

May be a criminal prosecution and the short seller being banned from the markets is solution.

Adani needs to act fast - and BCCI need to keep an eye on this too.

 

[Bhaag Viru Bhaag]

This looks like a scam. A short seller writes a negative and shares go down there by helping the short seller. This short seller was most likely in trouble because of the rapid rise in Adani shares.

May be a criminal prosecution and the short seller being banned from the markets is solution.

Yes this is a scam by Adanis. They are the ones who should be banned for stock manipulation and accounting fraud.

BCCI won't do anything. Everyone knows how close Adani is to Modi and BCCI comes under Jay Shah.

 

[WengerOut]

This looks like a scam. A short seller writes a negative and shares go down there by helping the short seller. This short seller was most likely in trouble because of the rapid rise in Adani shares.

May be a criminal prosecution and the short seller being banned from the markets is solution.

Adani did not provide the answers for the 80 odd questions raised by H´burg

 

[cricketjoshila]

Adani did not provide the answers for the 80 odd questions raised by H´burg

And why should Adani answer Hindenburg?

Adani shares are listed on BSE NSE, SEBI the market regulator is one to whom Adani answers.


Is Hindenburg not profiteering by publishing this report? They have vested interests here.

 

[JattMaula]

Adani did not provide the answers for the 80 odd questions raised by H´burg

Adanis are crooks.

 

[cricketjoshila]

Adanis are crooks.

Why? Because you don't like them?

 

[WengerOut]

And why should Adani answer Hindenburg?

Adani shares are listed on BSE NSE, SEBI the market regulator is one to whom Adani answers.


Is Hindenburg not profiteering by publishing this report? They have vested interests here.

Hindenburg is basically a short seller plus whistleblower company. They did the same to Tesla. Before publishing they would ask these qstns. Adanis did not answer. If they had answers, they could have provided it and all these chaos could have been avoided. Instead now additional overhead of legal route. Hindenburg has provided proof for their every claim as well.

 

[JattMaula]

Why? Because you don't like them?

Yup. I don't like any billionaires.

 

[Sidilicious]

And why should Adani answer Hindenburg?

Adani shares are listed on BSE NSE, SEBI the market regulator is one to whom Adani answers.


Is Hindenburg not profiteering by publishing this report? They have vested interests here.

Then Adanis have no reason to call it a scam. They were given the opportunity to respond in the report and decided not to. It sent a very negative message to the stock market.

 

[cricketjoshila]

Hindenburg is basically a short seller plus whistleblower company. They did the same to Tesla. Before publishing they would ask these qstns. Adanis did not answer. If they had answers, they could have provided it and all these chaos could have been avoided. Instead now additional overhead of legal route. Hindenburg has provided proof for their every claim as well.

Hindenburg is no authority to ask questions. They raise questions to bring the share prices down and make profits on their shorts.

The banks that have lent Adani haven't raised any default red flags.

The enforcement directorate haven't raised any red flags regards to foreign exchange violation.

Tax authorities haven't raised any demands regarding tax havens.

Many of the so called evidence of Hindenburg are newspaper articles. Some 7-8 years back.

What has happened today is that Adani shares are down by 20 per cent. The banking nifty is down as Indian banks have exposure to Adani. The sensex as a whole is down. This was a elaborate scheme by a short seller to earn profits.

Secondly this comes a day before Adani's secondary share sale was to start. This sale was to pare debt. Looks like they wanted to put a spoke in the scheme.

Some of the Adani companies

Adani Energy has Total of France as partner.

Adani Wilmar has Wilmar as partner.

Adani Enterprise just bought India's second largest cement company from Lafarge Holcim.

Are these all global companies cheating?

Adani has a dominant market position in operation of Airports and Ports. That gives them huge leverage and hence the valuation.

Anyways this panic selling will allow long term investors to take positions.

But the government must look how they must act on manipulation of share prices in India by a foreign entity.

 

[cricketjoshila]

Then Adanis have no reason to call it a scam. They were given the opportunity to respond in the report and decided not to. It sent a very negative message to the stock market.

Why will they respond?

Is Hindenburg some authority? They did the right thing.

Now the government must respond this share price manipulation by a foreign organisation.

 

[JaDed]

This looks like a scam. A short seller writes a negative and shares go down there by helping the short seller. This short seller was most likely in trouble because of the rapid rise in Adani shares.

May be a criminal prosecution and the short seller being banned from the markets is solution.

The short seller is the most reputable in the world they have done this to Chinese and American companies as well.

 

[Sidilicious]

Why will they respond?

Is Hindenburg some authority? They did the right thing.

Now the government must respond this share price manipulation by a foreign organisation.

And why can a company not call another a scam? Adanis financial reports are available for all. If there is indeed issues with Adani, then Hindenburg have done the right thing to inform the investors.

And they have a track record of being right in these things.

 

[Sidilicious]

Why will they respond?

Is Hindenburg some authority? They did the right thing.

Now the government must respond this share price manipulation by a foreign organisation.

And this is what happens when you don’t respond. The stock market thinks you are not responding because you have something to hide. The investors then pull out, and the stock crashes.

If Adanis are sure that there are no irregularities, then they can issue share buy backs. With the share price low, they would have suddenly created a lot value for their investors.

 

[Sidilicious]

Anyways this is not a question of india vs the world.

This is a question whether there are irregularities in Adani, and is about providing information to the investors.

 

[WengerOut]

IIRC, of the 7 companies owned by Adani, 5 of them have their current ratio below 1. That is, loss making. Also none of the mutual funds have invested in Adani shares but the govt controlled LIC, SBI etc have invested big in it. They are under danger if Adani goes down. Something is not right.

 

[Local.Dada]

Adanis are crooks.

Can you name the worlds most honest business corporation or billionaire?

 

[Bhaag Viru Bhaag]

Why? Because you don't like them?

So just because you like them, they are not crooks?

 

[Bhaag Viru Bhaag]

Can you name the worlds most honest business corporation or billionaire?

Are you trying to defend Adani here? This thread is about Adani so he rightly posted a comment regarding him here. There is no need to bring in other billionaires here to justify Adani's wrongdoings.

 

[JaDed]

Adanis are crooks.

Most Billionaires are crooks but they should cook the books better

 

[Champ_Pal]

Short Seller making accusations I hate these shorts. They need to burn. They spread all negativity about the stocks they target and profit from the fear of gullible traders.

I know no one likes Billionaires, but what will haters do when the world sees the first trillionaire

 

[Bhaag Viru Bhaag]

Bhakhts are trying too hard to present this as some 'India vs World' thing without caring much about the Indian retail investors. Hopefully we will get rid of modi and these jobbers soon.

 

[cricketjoshila]

And why can a company not call another a scam? Adanis financial reports are available for all. If there is indeed issues with Adani, then Hindenburg have done the right thing to inform the investors.

And they have a track record of being right in these things.

Adani financial reports are for all to see. They have debt and they have serviced the debt. Banks have no issues with them.

Thing is Hindenburg is talking about other things.

Tax Havens: Sucheta Dalal reported on it. SEBI investigated and cleared him. Now Hindenburg has again raised a issue that has already been dealt with.

CLSA the global research and brokerage firm has said that Adani group poses no risk to banks.

https://wap.business-standard.com/a...risk-to-indian-banks-clsa-123012700109_1.html




They are talking about some CBI inquiry. Not mentioning that the enquiry is for bidding for a coal block in 2012.

They were not awarded the coal block in 2012.So no affect on their finances

The enquiry is because the winner,Lanco Infratech was not eligible to bid as per tender norms. Now it has come out none of the bidders were eligible, including Adani.

The report is filled with such half truths.

 

[cricketjoshila]

Anyways this is not a question of india vs the world.

This is a question whether there are irregularities in Adani, and is about providing information to the investors.

This is exactly India vs World.

Stock price manipulation to hurt the Indian stock market and bank's share prices.

Hindenburg is not a investor in Adani. Adani isnt listed in USA.

And if and when Adaninis cleared of irregularitieswho will take the blame of wiping out billions of investors wealth. Will Hindenburg be forced to return the profits they made by manipulating the stock prices?

 

[cricketjoshila]

IIRC, of the 7 companies owned by Adani, 5 of them have their current ratio below 1. That is, loss making. Also none of the mutual funds have invested in Adani shares but the govt controlled LIC, SBI etc have invested big in it. They are under danger if Adani goes down. Something is not right.

Can you please post a reference to none of the mutual funds have invested in Adani companies?

 

[cricketjoshila]

The short seller is the most reputable in the world they have done this to Chinese and American companies as well.

How did you decide this?

 

[Kaptan]

No way Adani is going to court for this.
If Adani chooses to sue Hindenburg. All of Adani's secrets will be out when courts will request documentation. It will be a bloody carnage.
There is no way Adani will take this to court.

 

[JaDed]

How did you decide this?

Same way you decided you had to come and defend Adani

 

[JaDed]

No way Adani is going to court for this.
If Adani chooses to sue Hindenburg. All of Adani's secrets will be out when courts will request documentation. It will be a bloody carnage.
There is no way Adani will take this to court.

Many of Hindenburg’s targets threaten the same.. but lol give up at the end..

 

[JaDed]

This is exactly India vs World.

Stock price manipulation to hurt the Indian stock market and bank's share prices.

Hindenburg is not a investor in Adani. Adani isnt listed in USA.

And if and when Adaninis cleared of irregularitieswho will take the blame of wiping out billions of investors wealth. Will Hindenburg be forced to return the profits they made by manipulating the stock prices?

So why did the stock burn? Many have tried to short Reliance over the years never worked why do you think that is? lol

It’s not India vs the world, it’s one man who should had defended his company.. where is his response?

 

[JaDed]

If Adani comes out on top of this he is solid, if not he will go down like many not strong enough aka Anil Ambani types.

 

[cricketjoshila]

Same way you decided you had to come and defend Adani

I have a problem with a foreign entity manipulating stock prices in India and affecting investor wealth.

 

[cricketjoshila]

So why did the stock burn? Many have tried to short Reliance over the years never worked why do you think that is? lol

It’s not India vs the world, it’s one man who should had defended his company.. where is his response?

Panic selling.

Can you name a few reputed institutional investors like MFs, Brokerage, rating firms that supports Hindenburg?

Why not check the ratings by Moody S and P etc on Adani bonds?

 

[JaDed]

I have a problem with a foreign entity manipulating stock prices in India and affecting investor wealth.

Ok lets see if Adani opens his books after the defamation case he wouldn't be the first one to do it against Hindenburg.

 

[ex-q-zit]

Market Regulator Sebi Increases Scrutiny Of Adani Group: Report

Market regulator Securities and Exchange Board of India (Sebi) has increased the scrutiny of the deals done by Adani Group and will review the report issued by short-seller Hindenburg Research to add to its own ongoing preliminary investigation into the group’s foreign portfolio investors, news agency Reuters reported citing two sources aware of the matter.

“SEBI has been increasingly examining all the transactions that Adani Group has been undertaking in the listed space," according to Reuters report. SEBI has been increasingly asking for disclosures that it ordinarily does not.

In the case of Adani Group’s acquisition of Switzerland-based Holcim stake in Ambuja Cements and ACC, the regulator reportedly examined the offshore special purpose vehicle (SPV) used for the transaction.

The use of this SPV was disclosed by the group as part of the acquisition announcement in May 2022. The regulator had found as many as 17 foreign offshore entities involved in the funding of the transaction.

On Wednesday, the US-based Hindenburg Research said it had short positions in Adani Group shares accusing it of fraud, improper use of offshore tax havens and flagging concerns about high debt, leading to a massive sell-off of in Adani Group shares.

The Hindenburg Research report that caused fall in Adani share prices was prepared after two years of research and investigation by this forensic financial research firm. In an official tweet, Hindenburg Research wrote, “Today we reveal the findings of our 2-year investigation, presenting evidence that the Rs 17.8 trillion ($218 billion) Indian conglomerate Adani Group has engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades.”

Shares of Adani Ports and SEZ fell as much as 15 per cent, flagship Adani Enterprises dropped 10 per cent, Adani Power and Adani Wilmar were locked in 5 per cent lower circuit and Adani Total Gas and Adani Transmission were locked in 20 per cent lower circuit.

https://www.outlookindia.com/busine...es-scrutiny-of-adani-group-report-news-257141

 

[JaDed]

Market Regulator Sebi Increases Scrutiny Of Adani Group: Report

Market regulator Securities and Exchange Board of India (Sebi) has increased the scrutiny of the deals done by Adani Group and will review the report issued by short-seller Hindenburg Research to add to its own ongoing preliminary investigation into the group’s foreign portfolio investors, news agency Reuters reported citing two sources aware of the matter.

“SEBI has been increasingly examining all the transactions that Adani Group has been undertaking in the listed space," according to Reuters report. SEBI has been increasingly asking for disclosures that it ordinarily does not.

In the case of Adani Group’s acquisition of Switzerland-based Holcim stake in Ambuja Cements and ACC, the regulator reportedly examined the offshore special purpose vehicle (SPV) used for the transaction.

The use of this SPV was disclosed by the group as part of the acquisition announcement in May 2022. The regulator had found as many as 17 foreign offshore entities involved in the funding of the transaction.

On Wednesday, the US-based Hindenburg Research said it had short positions in Adani Group shares accusing it of fraud, improper use of offshore tax havens and flagging concerns about high debt, leading to a massive sell-off of in Adani Group shares.

The Hindenburg Research report that caused fall in Adani share prices was prepared after two years of research and investigation by this forensic financial research firm. In an official tweet, Hindenburg Research wrote, “Today we reveal the findings of our 2-year investigation, presenting evidence that the Rs 17.8 trillion ($218 billion) Indian conglomerate Adani Group has engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades.”

Shares of Adani Ports and SEZ fell as much as 15 per cent, flagship Adani Enterprises dropped 10 per cent, Adani Power and Adani Wilmar were locked in 5 per cent lower circuit and Adani Total Gas and Adani Transmission were locked in 20 per cent lower circuit.

https://www.outlookindia.com/busine...es-scrutiny-of-adani-group-report-news-257141

[MENTION=76058]cricketjoshila[/MENTION] Sebi is also the “world” now? lol

 

[MenInG]

[MENTION=76058]cricketjoshila[/MENTION] Sebi is also the “world” now? lol

Increased scrutiny doesn't mean Adani is guilty

 

[Ahmad-GERMANFC]

This looks like a scam. A short seller writes a negative and shares go down there by helping the short seller. This short seller was most likely in trouble because of the rapid rise in Adani shares.

May be a criminal prosecution and the short seller being banned from the markets is solution.

The scam is adani man.

No real stock goes up 3000% in a couple of years.

Read the report. It is actually very thorough and brought a lot of genuine facts which all lead to the conclusion that Adani group has a lot of things to answer to

 

[Ahmad-GERMANFC]

And why should Adani answer Hindenburg?

Adani shares are listed on BSE NSE, SEBI the market regulator is one to whom Adani answers.


Is Hindenburg not profiteering by publishing this report? They have vested interests here.

Hindenburg isn’t some chalta phirta firm.

It has credibility and history of calling out scams and this is why their word is taken seriously. If it was some random firm making allegation then nothing would have happened to stock. In market circles these things have been talked about for long

 

[Ahmad-GERMANFC]

And this is what happens when you don’t respond. The stock market thinks you are not responding because you have something to hide. The investors then pull out, and the stock crashes.

If Adanis are sure that there are no irregularities, then they can issue share buy backs. With the share price low, they would have suddenly created a lot value for their investors.

I don’t get why Indians are taking it as an attack on national pride and india as a country.

The short seller has credibility and it wouldn’t risk its reputation on an incorrect call. I actually read the report. There’s genuine claims there.

There’s a reason why the stocks fell and foreign investors want to stay away from Adani group now. The market is responding to a report with credibility. [MENTION=76058]cricketjoshila[/MENTION] is acting as if any random company can publish a report and the markets will respond to that.

 

[Ahmad-GERMANFC]

Most Billionaires are crooks but they should cook the books better

There’s a difference between crooks and moral issues.

Bezos, Gates, Ambani etc haven’t resorted to scams and cooking the books to this degree. There’s moral qualms about their operations but there is no equivalence between them and Adani group and how it functions

 

[MP2011]

Lol at this being touted as India vs world by minions!

Idea of India is far bigger than these Adanis and Ambanis.

 

[Sidilicious]

I don’t get why Indians are taking it as an attack on national pride and india as a country.

The short seller has credibility and it wouldn’t risk its reputation on an incorrect call. I actually read the report. There’s genuine claims there.

There’s a reason why the stocks fell and foreign investors want to stay away from Adani group now. The market is responding to a report with credibility. [MENTION=76058]cricketjoshila[/MENTION] is acting as if any random company can publish a report and the markets will respond to that.

I am also a little puzzled with this india vs the world thing. When it comes to govts, india is in bed with most of the strong governments. If this was coming from Chinese or an Iranian, it’s understandable.

Some people have this strange complex that any criticism of anything Indian is a hatred of India. It’s really pathetic and shows us as weak.

When one should actually be looking out for Indian investors, who are mostly middle class Indians, some posters are defending a company when all indications show it could be another Enron (of course, I am exaggerating. But you get the point)

 

[pillionrider]

I have a problem with a foreign entity manipulating stock prices in India and affecting investor wealth.

Did you have the same problem when Sahara got wiped out?

You are just sore because Modiji's friend is getting rekt. No more private planes for Modi.

Bad Modi

 

[JaDed]

There’s a difference between crooks and moral issues.

Bezos, Gates, Ambani etc haven’t resorted to scams and cooking the books to this degree. There’s moral qualms about their operations but there is no equivalence between them and Adani group and how it functions

I agree as such top 10 are relatively clean in way of books or the other but there are tons like Adani across the world including US..who just do a better job than hiding than he did.

 

[pillionrider]

Increased scrutiny doesn't mean Adani is guilty

His meteoric rise under Modi is questionable. Nothing wrong with a businessman making it big. But this is unnatural coupled with government selling its assets to him. Too many shady things too, like multiple drug-seizures at ports controlled by him.

Not everyone in India is a sellout, Mr Modi and his fans.

Be afraid. Be very afraid.

 

[Ahmad-GERMANFC]

I agree as such top 10 are relatively clean in way of books or the other but there are tons like Adani across the world including US..who just do a better job than hiding than he did.

yea but then they don’t become top 10 richest people in the world.

You’re sounding like an apologist by making it seem like Adani is being targeted eventhough there’s so many others doing it allegedly

 

[JaDed]

yea but then they don’t become top 10 richest people in the world.

You’re sounding like an apologist by making it seem like Adani is being targeted eventhough there’s so many others doing it allegedly

no.. if you read my other posts in this thread you will see that’s not the case, Hindenburg is someone i know of because a stock I had once and sold after their report, their reporting is very tight and the companies at receiving end always just “warn” like what Adani has done which almost shows he is guilty.

My point was on keeping it tight.. there are some decent businesses of Adani like the ports but others are leveraged which has been time and again brought up so he didn’t move the money well.

There is a billionaire featured in top 10 billionaires that went broke too, FTX is also recently went broke.

My point was of Billionaires as such.. many will fake it and yes many will reach a point.. until they break or make.

 

[cricketjoshila]

[MENTION=76058]cricketjoshila[/MENTION] Sebi is also the “world” now? lol

When shares of Adani and banking Nifty has fallen so much, SEBI scrutiny is obvious.

They did a scrutiny when Sucheta Dalal wrote an article.

 

[Bewal Express]

Some Inds are acting as if their chacha was being attacked. Most billionaires have skeletons in their closets and anyways buy the shares and push the share price back up

 

[Bhaag Viru Bhaag]

Increased scrutiny doesn't mean Adani is guilty

But it does mean that "daal mein kuch kaala hai".

 

[Bhaag Viru Bhaag]

I don’t get why Indians are taking it as an attack on national pride and india as a country.

The short seller has credibility and it wouldn’t risk its reputation on an incorrect call. I actually read the report. There’s genuine claims there.

There’s a reason why the stocks fell and foreign investors want to stay away from Adani group now. The market is responding to a report with credibility. [MENTION=76058]cricketjoshila[/MENTION] is acting as if any random company can publish a report and the markets will respond to that.

Only those who have never purchased a single share in their lives are turning this into India vs World.

 

[Bhaag Viru Bhaag]

Some Inds are acting as if their chacha was being attacked. Most billionaires have skeletons in their closets and anyways buy the shares and push the share price back up

You are right. Modi treats Adani like his brother.

 

[DeadlyVenom]

The attitide of Indians is frightening.

These guys probably skinned many of your working class country men and they are still being defended patrioticaly.

Indian paranoia seems to be reaching news heights recently. Any criticism is perceived as an attack on all of India

 

[MP2011]

The attitide of Indians is frightening.

Indian paranoia seems to be reaching news heights recently. Any criticism is perceived as an attack on all of India

You can thank feku for that.

Post 2014, anyone who dares to question the regime is immediately termed as anti national.

As for outside world, they are termed as jealous of our 'progress' towards a 'developed' nation.

You won't find a more gullible species than the minions who take every word of feku like gospel's truth.

 

[MP2011]

Adani has invested heavily in power, roads, railways, airports, energy and media, FMCG.

They are also heavy investors in SBI and LIC. For crores of Indians' sake who have staked their lives' savings in these 2 enterprises, I hope Adani comes out clean of all this mess.

They have been allowed by current regime to have too much stake in India's public sector enterprises so for India's sake, i hope all is well with their accounts.

 

[Hitman]

I’m invested in a small cap mutual fund scheme, and while it does have around 7% of it’s portfolio in large caps, there’s no shares of any Adani company.

 

[RexRex]

Is this Satyam 2009 part 2 ? I really hope not. But the Hindenburg group have put out a response to Adani's statement.

 

[happydavy]

Few points since many PPers seem to be missing it.
1. Mutual Funds are investors in Adani Ports and Adani enterprises, not in other Adani companies. There might be some MF participation in Adani Green but that's because whenever it becomes part of nifty50, index funds have to automatically buy it. But it would be pretty small number.

2. While MFs aren't major investors in the other Adani companies but few of them do have very credible investors - for eg: adani green is 20% owned by french total energy, which is 5th largest energy company in the world. Adani gas has total energy as co-promoter together owning 38%.

3. Stocks were overvalued has been a known fact and thats why no MF invested in many of Adani companies, valuations were through the roof.

4. Of approx $25 bn debt, only around 40% is Indian banks, rest is usd debt outside India by foreign banks and corporate bonds.

5. Hindenburg report has collated the accusations and come out with a report but tbh most of these accusations were known to people like me who are active in capital markets. That large chunk of public shareholding is with promoters through shell companies has been questioned multiple times including an ongoing investigation by SEBI. While accusations of lax corporate governance do seem credible but not necessarily point to any fraud. So there is substance in the theory that it's a thought through plan to attack Adani sensationally as large chunk of 88 questions they have posted are nothing new but already there in the corporate disclosures of adani group at several points. For eg: if i say in my annual disclosures that income tax is auditing my books for expenses, then i am telling my investors that on ongoing tax audit is there. Hindenburg has made it look like they have discovered this. Few of the accusations are plain wrong - 'adani has pledged the shares to hilt' - pledging of 4% to 17% of personal shares isn't hilt, hilt would be close to 90%

6. Adani did come out with a response deck responding to the 88 allegations, unfortunately many haven't read it and yet claiming that adani hasn't responded. One could just google it or download it from bseindia. I personally feel it should be more detailed and address the shareholding questions in greater depth.

7. This saga doesn't have much impact on capital markets per se in India as hardly any MFs or even retail investors own Adani stocks. However, it does impact the perception overall and nifty will struggle over the next 2-3 months until this issue gets resolved. Could any of adani companies result in debt servicing issue, no chance in my opinion. It does impact Adani's growth though, capital raising won't be easy for him. We all knew adani stock prices aren't sustainable and are manipulated but i don't think it means a scam of proportion Hindenburg report is making it out to be.

 

[happydavy]

Is this Satyam 2009 part 2 ? I really hope not. But the Hindenburg group have put out a response to Adani's statement.

View attachment 118495

This is dated. Adani response is there, not adequate may be but response in form of a deck was uploaded on bse website.

 

[happydavy]

Adani has invested heavily in power, roads, railways, airports, energy and media, FMCG.

They are also heavy investors in SBI and LIC. For crores of Indians' sake who have staked their lives' savings in these 2 enterprises, I hope Adani comes out clean of all this mess.

They have been allowed by current regime to have too much stake in India's public sector enterprises so for India's sake, i hope all is well with their accounts.

Chill Maro Bhai, don't believe in sensation. Adani loans are not even 0.5% of SBI loan book and his companies are financially doing well. I see no chance of default. LIC has close to $600 bn of assets, while it makes news to say lic lost $xoo mn ij today's crash but these are mark to market prices. LIC had invested in most of adani stocks pre-2020 when they were 1/4th thr price. I am pretty sure LiC net net is making profits on adanis investments. And it's a small change in LIC overall asset base.

 

[happydavy]

The attitide of Indians is frightening.

These guys probably skinned many of your working class country men and they are still being defended patrioticaly.

Indian paranoia seems to be reaching news heights recently. Any criticism is perceived as an attack on all of India

That's true and it's stupid, but bear in mind that lot of perception is because of social media. With less than 1.5% population on twitter, it's made to look as if twitter represents India. It doesn't. Majority of people are busy with their lives and can't care less with what happens with Adani. At the same time, there could be some basis to the theory that it's west way of getting back at modi for his Russia policy. I personally feel even if that's the case then it's fair. Countries do go to any extent to extract leverage, India does that and so if west is doing it now, it's all part of the same game.

 

[cricketjoshila]

Few points since many PPers seem to be missing it.
1. Mutual Funds are investors in Adani Ports and Adani enterprises, not in other Adani companies. There might be some MF participation in Adani Green but that's because whenever it becomes part of nifty50, index funds have to automatically buy it. But it would be pretty small number.

2. While MFs aren't major investors in the other Adani companies but few of them do have very credible investors - for eg: adani green is 20% owned by french total energy, which is 5th largest energy company in the world. Adani gas has total energy as co-promoter together owning 38%.

3. Stocks were overvalued has been a known fact and thats why no MF invested in many of Adani companies, valuations were through the roof.

4. Of approx $25 bn debt, only around 40% is Indian banks, rest is usd debt outside India by foreign banks and corporate bonds.

5. Hindenburg report has collated the accusations and come out with a report but tbh most of these accusations were known to people like me who are active in capital markets. That large chunk of public shareholding is with promoters through shell companies has been questioned multiple times including an ongoing investigation by SEBI. While accusations of lax corporate governance do seem credible but not necessarily point to any fraud. So there is substance in the theory that it's a thought through plan to attack Adani sensationally as large chunk of 88 questions they have posted are nothing new but already there in the corporate disclosures of adani group at several points. For eg: if i say in my annual disclosures that income tax is auditing my books for expenses, then i am telling my investors that on ongoing tax audit is there. Hindenburg has made it look like they have discovered this. Few of the accusations are plain wrong - 'adani has pledged the shares to hilt' - pledging of 4% to 17% of personal shares isn't hilt, hilt would be close to 90%

6. Adani did come out with a response deck responding to the 88 allegations, unfortunately many haven't read it and yet claiming that adani hasn't responded. One could just google it or download it from bseindia. I personally feel it should be more detailed and address the shareholding questions in greater depth.

7. This saga doesn't have much impact on capital markets per se in India as hardly any MFs or even retail investors own Adani stocks. However, it does impact the perception overall and nifty will struggle over the next 2-3 months until this issue gets resolved. Could any of adani companies result in debt servicing issue, no chance in my opinion. It does impact Adani's growth though, capital raising won't be easy for him. We all knew adani stock prices aren't sustainable and are manipulated but i don't think it means a scam of proportion Hindenburg report is making it out to be.

Finally someone has put the matter in a gist.

Also the banking nifty fell as Hindenburg claimed banks were at a risk.

That's my concern. The banking nifty.

 

[MenInG]

Mumbai: The sell-off in Adani stocks, triggered by US activist short seller Hindenburg Research's adverse report on the group, extended to the second straight day with the conglomerate's total market value eroding ₹3.22 lakh crore on Friday after shedding ₹96,000 crore on Wednesday. The Ahmedabad-based group's overseas bonds also declined on Friday mirroring the subdued sentiment among investors.

The market capitalisation of Adani Group companies fell to ₹15.01 lakh crore on Friday from ..


Read more at:

https://economictimes.indiatimes.co...ofinterest&utm_medium=text&utm_campaign=cppst


==

Reuters

MUMBAI - Bankers on the $2.5 billion share sale of India's Adani Enterprises are considering extending the sale or cutting the issue price after shares plunged on a U.S. short seller's report, said three people familiar with the deal.

Among the options the bankers are considering are to extend the Tuesday closing date for the subscription of the issue by four days, the sources told Reuters on Saturday.

Seven listed companies of the conglomerate controlled by one of the world's richest men, Gautam Adani, have lost a combined $48 billion in market value since Hindenburg Research on Tuesday flagged concerns about debt levels and the use of tax havens.

The Adani Group has called the report baseless and said it was considering taking action against Hindenburg.

Friday's 20% fall in shares of group flagship Adani Enterprises dragged it 11% below the minimum offer price of the secondary sale. On first day of retail bidding on Friday, the issue was subscribed around 1%, raising concerns over whether it would be able to proceed.

"Everyone was shocked. They did not expect such a poor response," one source said.

Adani Group did not immediately respond to a request for comment.

Adani had set a floor price of 3,112 rupees ($38.22) a share and a cap of 3,276 rupees, but Adani Enterprises closed on Friday 2,761.45 rupees.

The other option being considered is lowering the price, the sources said, with one saying it could be cut by as much as 10%.

A decision was expected on Monday, the sources said.

"Revision in price band or time extension of public issue can technically be undertaken with a newspaper advertisement and issuing an addendum," said Sumit Agrawal, managing partner at Regstreet Law Advisors and a former officer of the Indian capital markets regulator.

At the end of the first day of the share sale, investors, mostly retail, had bid for around 470,160 of the 45.5 million shares on offer, according to Indian stock exchange data.

The sale is being managed by Jefferies, India's SBI Capital Markets, and ICICI Securities among others. They did not immediately respond to requests for comment.

A fourth source said Adani management is also discussing the share sale internally to decide on next steps.

The Hindenburg report questioned how the Adani Group used entities in offshore tax havens such as Mauritius and the Caribbean islands. It said key listed Adani companies had "substantial debt", which put the entire group on a "precarious financial footing".

 

[ElRaja]

adani despite its claim, will never sue hindenburg in the US, it would be forced to release documentation which would prove the truth, i.e. which is likely to be somewhere between adani and hindenburgs version.

short selling is dangerous business, as ackman learned with herballife, which is an obvious mlm, but still left him with a losing trade.

 

[MP2011]

Chill Maro Bhai, don't believe in sensation. Adani loans are not even 0.5% of SBI loan book and his companies are financially doing well. I see no chance of default. LIC has close to $600 bn of assets, while it makes news to say lic lost $xoo mn ij today's crash but these are mark to market prices. LIC had invested in most of adani stocks pre-2020 when they were 1/4th thr price. I am pretty sure LiC net net is making profits on adanis investments. And it's a small change in LIC overall asset base.

As I said earlier, I hope whatever you say is correct. I absolutely don't want Adani group to be destabilized by these allegations.

Adani is too big a success story to become bad overnight.

 

[happydavy]

As I said earlier, I hope whatever you say is correct. I absolutely don't want Adani group to be destabilized by these allegations.

Adani is too big a success story to become bad overnight.

No no don't be emotional about Adani, he ain't a saint and has built his whole business by leveraging on his stocks using operated prices. All i am saying is that the companies he has built are all infrastructure related profitable companies with predictable cashflows and so they aren't going to default. Plus of the $13 bn debt he has raised since 2020, 90% has been through foreign lenders, who are not stupid (or under any political pressure) to give him loans if they doubted his cashflows. He's a stock operator but luckily has invested in real businesses with real assets using the ill gotten wealth. However, from this point forward he will struggle to raise easy capital and so his growth will slow down.

 

[MP2011]

No no don't be emotional about Adani, he ain't a saint and has built his whole business by leveraging on his stocks using operated prices. All i am saying is that the companies he has built are all infrastructure related profitable companies with predictable cashflows and so they aren't going to default. Plus of the $13 bn debt he has raised since 2020, 90% has been through foreign lenders, who are not stupid (or under any political pressure) to give him loans if they doubted his cashflows. He's a stock operator but luckily has invested in real businesses with real assets using the ill gotten wealth. However, from this point forward he will struggle to raise easy capital and so his growth will slow down.

Yeah, that he is struggling to raise fresh funds can be gauged from the fact that his 20,000 crores FPO got subscribed just 1% on the first day.

I know it's just the 1st day but signs are ominous.

 

[MP2011]

Also, I'm genuinely curious to know how come Adani has his fingers in so many pies.

Even Mukesh Ambani isn't as omnipresent as Gautam Adani is in almost every sector.

Latter's offshore investments are talk of town unlike Ambani who has mostly played safe as far investing outside India is concerned.

 

[Bhaag Viru Bhaag]

Bill Ackman says Hindenburg's Adani report 'highly credible'

Jan 27 (Reuters) - Billionaire U.S. investor Bill Ackman said on Thursday that he found short-seller Hindenburg Research's report on India's Adani Group "highly credible and extremely well researched."

Shares in seven listed group companies of Adani lost $10.73 billion in market capitalization in India on Wednesday after the U.S. short-seller released the report, which accused the conglomerate of improper use of offshore tax havens.

Hindenburg's report also said it held short positions in Adani Group through its U.S.-traded bonds and non-Indian-traded derivative instruments.

Adani Group has said that it is evaluating "remedial and punitive action" against Hindenburg, calling the report "maliciously mischievous, (and) unresearched."

Shortly after, Hindenburg said it will demand documents in legal discovery process if Adani Group files a lawsuit in the United States.

"Adani's response to Hindenburg is the same as Herbalife's response to our original 350-page presentation. Herbalife remains a pyramid scheme. I found the Hindenburg report highly credible and extremely well researched," Pershing Square boss Ackman said in a tweet on Thursday.

"We are not invested long or short in any of the Adani companies or Herbalife, nor have we done our own independent research," he added.

<blockquote class="twitter-tweet"><p lang="en" dir="ltr">We are not invested long or short in any of the Adani companies or Herbalife, nor have we done our own independent research. You should not consider this tweet investment advice, just my judgment based on the <a href="https://twitter.com/HindenburgRes?ref_src=twsrc%5Etfw">@HindenburgRes</a> report and the Adani response.</p>— Bill Ackman (@BillAckman) <a href="https://twitter.com/BillAckman/status/1618790429784440834?ref_src=twsrc%5Etfw">January 27, 2023</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
Ackman bet $1 billion against Herbalife starting in 2012, saying it violated Chinese direct-selling laws and was a pyramid scheme.

He exited his short in Herbalife at a loss in 2018 when his bets went awry, with the shares of the weight management and nutrition company rising more than 150%.

Adani Group did not immediately respond to Reuters request for comment.

https://www.reuters.com/business/bi...urgs-adani-report-highly-credible-2023-01-27/

 

[MenInG]

Richest Asian Gautam Adani's group on Sunday expressed confidence that the ₹ 20,000 crore follow-on share sale of its flagship firm will sail through despite a massive hammering of the conglomerate's stocks following a scathing report by a US-based short seller.

Group CFO Jugeshinder Singh said no change in offering price or schedule is being considered due to temporary volatility in the market as the follow-on public offer (FPO) of Adani Enterprises Ltd is the best vehicle for strategic institutional investors to own a pie of the conglomerate's fast expanding airports, mining, roads, new energy and data centre businesses.

All seven Adani group companies' stocks fell sharply over the last two trading sessions, wiping out ₹ 10.7 lakh crore of investor wealth after Hindenburg Research alleged that the ports-to-energy-to-cement conglomerate had engaged in "brazen stock manipulation and accounting fraud" for decades.

Read more at:

https://www.ndtv.com/india-news/ada...nder-probe-3733902#pfrom=home-ndtv_topstories

 

[daytrader]

Adani Group says Hindenburg fraud claim 'calculated attack on India'

The company owned by Asia's richest man Gautam Adani has issued a detailed rebuttal of allegations of wrongdoing by short seller Hindenburg Research.

In a document, which runs to more than 400 pages, Adani Group says the report is a "calculated attack on India".

Later on Sunday, Hindenburg said "Adani failed to specifically answer 62 of our 88 questions" detailed in its report.

Adani Group, an Indian conglomerate, had more than $50bn (£40.4bn) wiped off its stock market value last week.

It also said that it had complied with all local laws and had made the necessary regulatory disclosures.

"All transactions entered into by us with entities who qualify as 'related parties' under Indian laws and accounting standards have been duly disclosed by us," Adani Group said in a 413-page document issued late on Sunday.

It went on to accuse the Hindenburg report of being intended to enable the US-based short seller to book gains, without citing evidence.

"This is rife with conflict of interest and intended only to create a false market in securities to enable Hindenburg, an admitted short seller, to book massive financial gain through wrongful means at the cost of countless investors," it added.

"Short-selling" is when someone bets against a company's share price in the expectation that it will fall.

In response Hindenburg said: "To be clear, we believe India is a vibrant democracy and an emerging superpower with an exciting future."

"We also believe India's future is being held back by the Adani Group, which has draped itself in the Indian flag while systematically looting the nation."

BBC

 

[Adijazz1706]

Adani stocks down today as well by hefty margins at that, wsb are ecstatic

 

[Bhaag Viru Bhaag]

Adani Group says Hindenburg fraud claim 'calculated attack on India'

The company owned by Asia's richest man Gautam Adani has issued a detailed rebuttal of allegations of wrongdoing by short seller Hindenburg Research.

In a document, which runs to more than 400 pages, Adani Group says the report is a "calculated attack on India".

Later on Sunday, Hindenburg said "Adani failed to specifically answer 62 of our 88 questions" detailed in its report.

Adani Group, an Indian conglomerate, had more than $50bn (£40.4bn) wiped off its stock market value last week.

It also said that it had complied with all local laws and had made the necessary regulatory disclosures.

"All transactions entered into by us with entities who qualify as 'related parties' under Indian laws and accounting standards have been duly disclosed by us," Adani Group said in a 413-page document issued late on Sunday.

It went on to accuse the Hindenburg report of being intended to enable the US-based short seller to book gains, without citing evidence.

"This is rife with conflict of interest and intended only to create a false market in securities to enable Hindenburg, an admitted short seller, to book massive financial gain through wrongful means at the cost of countless investors," it added.

"Short-selling" is when someone bets against a company's share price in the expectation that it will fall.

In response Hindenburg said: "To be clear, we believe India is a vibrant democracy and an emerging superpower with an exciting future."

"We also believe India's future is being held back by the Adani Group, which has draped itself in the Indian flag while systematically looting the nation."

BBC

They are trying too hard to turn this into India vs World lol.

 

[IMMY69]

They are trying too hard to turn this into India vs World lol.

This was evident from the moment the news broke. It was first peddled here by our resident BJP rep and my Indian friends are receiving the same handle... luckily they can pretty much see it for what it is and the actions of those such as CJ seems to or working against them.

 

[Technics 1210]

This news should not come as a shock.

Anil Ambani and Vijay Mallya are just some of the so called rich Indians who have fiddled with the account books, so much so, the later was seeking asylum in the UK but then extradited to India.

In corporate Amreeka, this type of news is very common, so it should come as no surprise that Indian companies are built on the same deck of cards.