Hindenburg's three big allegations against the Adani group
The US-based investment firm says it holds short positions in the conglomerate.
Why read this story?
Editor's note: Hindenburg Research has accused the Adani group of stock manipulation, accounting irregularities and misappropriation of funds. All nine group stocks listed on the stock exchanges are trading in the red, after the US-based activist investment firm published its report on Wednesday. Hindenburg says the group’s listed companies had “substantial debt”, putting it on a “precarious financial footing”. The firm disclosed that it holds short positions in the group through “US-traded bonds and non-Indian-traded derivative instruments”. “Even if you ignore the findings of our investigation,” says the report, the group’s “key listed companies have 85 per cent downside purely on a fundamental basis owing to sky-high valuations”. Over the past two years, the market capitalization of the Adani group’s nine stocks has grown more than 6x to over $226 billion (Rs 18.42 lakh crore). The group’s flagship entity, Adani Enterprises Ltd, is in the midst of raising up to Rs 20,000 crore in fresh equity capital to fund its road construction, solar power and airports verticals. Based on a two-year investigation into the group, the firm made several allegations. Following are …
More in Business
You may also like
Why Adani Green’s rapid expansion is hurting its bottom line
The renewable energy firm’s profit plunges 99% to its lowest since 2020 as surging finance costs erase gains from record energy sales.
Reliance’s growth engines may be losing steam
Telecom and retail, which account for half the conglomerate’s revenue and most of its valuation, aren’t accelerating fast enough to justify their price tags.
Can SEBI get a good social media team for investor education?
With social media becoming a crucial source of financial guidance, it doesn’t help that many first-time investors remain strikingly unaware of regulations meant to protect them against unregistered entities.
