Adani Group Controversy Explained | Hindenburg Research Exposes Fraud

Adani Group Scandal Explained
Hindenburg Allegations
Adani Group: How The World's 3rdc Richest Man Is Pulling The Largest Con In Corporate History
The adani group is run by Asia's richest man Gautam adani.
It's the second largest conglomerate in india. The group is in many areas of business. They deal in sports, airports, shipping ports, cement, mines, data centers, power generation and transmission and development of other infrastructure projects.
However overnight, Adani’s stock price lost 100billion dollars within 6 days. While its owner Gautam Adani lost 60 billion dollars in paper losses. It got so bad, Adani had to stop its 2.5 billion dollar follow on public offering. There was an uproar in the Indian parliament and short sellers of adani group are celebrating! The Reserve Bank of India had to respond to the Adani scandal to assure investors its banking system remained stable and resilient.
How did India’s 2nd largest conglomerate, the adani group which was part of India’s growth story and has ties to India’s prime minister become so hated and controversial?
what happened?
Well the Hindenburg happened. A short seller company in New York, Hindenburg research, put out a 100 page report detailing how the Adani group could be the greatest con in corporate history. They also said they had a short position in the Adani group.
Hindenburg accused Adani of stock price manipulation and accounting fraud which spanned decades.
The Adani group fought back against the report. Calling it baseless and “ a calculated attack on India” but it didn’t work.
Initially the Hindenburg research report only wiped out 12 billion dollars from the adani group’s stock. But as rumors began to spread, more investors panicked and began pulling out of Adani group’s companies, resulting in an over 100 billion dollars lost across their 7 publicly listed companies.
It's not as bad as Facebook which lost 650 billion dollars in market value because of their meta verse play.
However the 100 billion dollars in paper losses was worrying enough to warrant a response from the adani group. They obviously had to stop the 2.4billion dollar fpo which was ongoing.
Gautama Adani’s net worth fell by 60 billion dollars. He went from the third richest person in the world to the 16th richest.
India’s parliament was in turmoil over the Adani group fraud allegations. There were demands for a debate and a joint parliamentary committee probe into the adani group. India’s prime minister Narendra Modi came under fire for having close ties to the adani group.
Both Credit Suisse and Citigroup have stopped investors from using the Adani group securities as collateral against margin loans.
India’s market regulator sebi increased scrutiny on adani. Promising to add hidenburg research into their ongoing pile of investigations of the adani group.
India’s national stock exchange has placed shares of adani enterprises, adani ports and Abuja cements under additional surveillance.
In America, S&P Global ratings, cut its ratings outlook on adani electricity and adani ports from stable to negative. the S&P dow jones indices said it was going to remove Adani enterprises from its sustainability indexes soon.

Hindenburg Research 100 Page Report On Adani Group Original
https://hindenburgresearch.com/adani/

Adani Group's 400 Page Rebuttal Report Against Hindenburg
https://www.adani.com/-/media/Project/Adani/Invetsors/Adani-Response-to-Hindenburg-January-29-2023.pdf?la=en

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