Adani Group, the ports-to-energy conglomerate led by Indian billionaire Gautam Adani, has been accused by US-based short seller firm Hindenburg Research of engaging in “brazen” stock manipulation and accounting fraud. On Wednesday, Hindenburg Research published a lengthy report on Adani and his group, alleging massive fraud and stock manipulation. The report sent shares tied to seven of the Adani Group\u2019s listed companies falling by more than 5%, taking a $10.8 billion hit, and forcing the company to issue a strong denial of its contents.<\/p>\n
On January 25th, the stocks of the seven publicly traded companies within the Adani Group dropped by as much as 10% on Indian stock exchanges. Today (Jan. 25), the stocks experienced a decrease of 18%.[0]<\/a><\/sup> Data from BSE reveals that the company lost $24.5 billion in market capitalization due to the massive selloff.[0]<\/a><\/sup><\/p>\n Hindenburg Research has declared that they have adopted a ‘short’ position in Adani’s US-traded bonds and Indian-listed derivatives, suggesting that they anticipate a decrease in the already over-leveraged stocks of the organization.[1]<\/a><\/sup><\/p>\n Jatin Jalundhwala, lead head of the Adani Group, issued a statement expressing his concern over the volatility in the Indian stock markets caused by the Hindenburg Research report, released on the 24th of January 2023, which had a damaging effect on the Group, its shareholders, and investors. The report was irresponsible and has caused great distress to Indian citizens.[2]<\/a><\/sup><\/p>\n Even if you ignore the findings of our investigation and take the financials of Adani Group at face value, its seven key listed companies have 85% downside purely on a fundamental basis owing to sky-high valuations, the report said.[0]<\/a><\/sup> The report also highlighted that the group is on an unstable financial footing due to their large amount of debt.[3]<\/a><\/sup><\/p>\n The statement from the ports-to-energy conglomerate declared that the report is an insidious amalgamation of biased false information and aged, baseless and discredited accusations that have been tried and dismissed by India’s supreme courts.[4]<\/a><\/sup><\/p>\n The selloff in Gautam Adani\u2019s corporate empire accelerated on Friday, erasing more than $51 billion of market value in two sessions as Asia\u2019s richest man struggles to contain the fallout from the Hindenburg report.[5]<\/a><\/sup><\/p>\n 0. <\/span>“A US research firm has accused Adani of pulling \u201cthe largest con in corporate history”” Yahoo! Voices, 25 Jan. 2023, https:\/\/www.yahoo.com\/now\/us-research-firm-accused-adani-090000488.html<\/a><\/a><\/p>\n 1. <\/span>“Adani shares fall as short seller firm Hindenburg announces short position” CNBC, 25 Jan. 2023, https:\/\/www.cnbc.com\/2023\/01\/25\/adani-group-hindenburg-short-position.html<\/a><\/a><\/p>\n 2. <\/span>“Adani Group: Asia’s richest man hits back at ‘con’ allegations” BBC, 26 Jan. 2023, https:\/\/www.bbc.com\/news\/business-64408720<\/a><\/a><\/p>\n 3. <\/span>“Gautam Adani Accused of \u2018Largest Con in Corporate History\u2019” TIME, 25 Jan. 2023, https:\/\/time.com\/6250052\/adani-hindenburg-fraud\/<\/a><\/a><\/p>\n 4. <\/span>“Adani net worth crashes $5.5B in a day after short-seller allegations” Markets Insider, 26 Jan. 2023, https:\/\/markets.businessinsider.com\/news\/stocks\/gautam-adani-hindenburg-allegations-net-worth-crash-2023-1<\/a><\/a><\/p>\n 5. <\/span>“Adani Rout Crosses $50 Billion as Stocks Plunge by Daily Limits” Yahoo News, 27 Jan. 2023, https:\/\/news.yahoo.com\/adani-group-stocks-plunge-extending-041424709.html<\/a><\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Adani Group, the ports-to-energy conglomerate led by Indian billionaire Gautam Adani, has been accused by US-based short seller firm Hindenburg Research of engaging in “brazen” stock manipulation and accounting fraud. On Wednesday, Hindenburg Research published a lengthy report on Adani and his group, alleging massive fraud and stock manipulation. The report sent shares tied to seven of the Adani Group\u2019s listed companies falling by more than 5%, taking a $10.8 billion hit, and forcing the company to issue a strong denial of its contents.<\/p>\n On January 25th, the stocks of the seven publicly traded companies within the Adani Group dropped by as much as 10% on Indian stock exchanges. Today (Jan. 25), the stocks experienced a decrease of 18%.[0]<\/a><\/sup> Data from BSE reveals that the company lost $24.5 billion in market capitalization due to the massive selloff.[0]<\/a><\/sup><\/p>\n Hindenburg Research has declared that they have adopted a ‘short’ position in Adani’s US-traded bonds and Indian-listed derivatives, suggesting that they anticipate a decrease in the already over-leveraged stocks of the organization.[1]<\/a><\/sup><\/p>\n Jatin Jalundhwala, lead head of the Adani Group, issued a statement expressing his concern over the volatility in the Indian stock markets caused by the Hindenburg Research report, released on the 24th of January 2023, which had a damaging effect on the Group, its shareholders, and investors. The report was irresponsible and has caused great distress to Indian citizens.[2]<\/a><\/sup><\/p>\n Even if you ignore the findings of our investigation and take the financials of Adani Group at face value, its seven key listed companies have 85% downside purely on a fundamental basis owing to sky-high valuations, the report said.[0]<\/a><\/sup> The report also highlighted that the group is on an unstable financial footing due to their large amount of debt.[3]<\/a><\/sup><\/p>\n The statement from the ports-to-energy conglomerate declared that the report is an insidious amalgamation of biased false information and aged, baseless and discredited accusations that have been tried and dismissed by India’s supreme courts.[4]<\/a><\/sup><\/p>\n The selloff in Gautam Adani\u2019s corporate empire accelerated on Friday, erasing more than $51 billion of market value in two sessions as Asia\u2019s richest man struggles to contain the fallout from the Hindenburg report.[5]<\/a><\/sup><\/p>\n 0. <\/span>“A US research firm has accused Adani of pulling \u201cthe largest con in corporate history”” Yahoo! Voices, 25 Jan. 2023, https:\/\/www.yahoo.com\/now\/us-research-firm-accused-adani-090000488.html<\/a><\/a><\/p>\n 1. <\/span>“Adani shares fall as short seller firm Hindenburg announces short position” CNBC, 25 Jan. 2023, https:\/\/www.cnbc.com\/2023\/01\/25\/adani-group-hindenburg-short-position.html<\/a><\/a><\/p>\n 2. <\/span>“Adani Group: Asia’s richest man hits back at ‘con’ allegations” BBC, 26 Jan. 2023, https:\/\/www.bbc.com\/news\/business-64408720<\/a><\/a><\/p>\n 3. <\/span>“Gautam Adani Accused of \u2018Largest Con in Corporate History\u2019” TIME, 25 Jan. 2023, https:\/\/time.com\/6250052\/adani-hindenburg-fraud\/<\/a><\/a><\/p>\n 4. <\/span>“Adani net worth crashes $5.5B in a day after short-seller allegations” Markets Insider, 26 Jan. 2023, https:\/\/markets.businessinsider.com\/news\/stocks\/gautam-adani-hindenburg-allegations-net-worth-crash-2023-1<\/a><\/a><\/p>\n 5. <\/span>“Adani Rout Crosses $50 Billion as Stocks Plunge by Daily Limits” Yahoo News, 27 Jan. 2023, https:\/\/news.yahoo.com\/adani-group-stocks-plunge-extending-041424709.html<\/a><\/a><\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"_links":{"self":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/179"}],"collection":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/comments?post=179"}],"version-history":[{"count":0,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/179\/revisions"}],"wp:attachment":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media?parent=179"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/categories?post=179"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/tags?post=179"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}