The route in the adani groups
shares deepens with the conglomerates
valuation now down by 66 billion dollars.
the adani group versus the Hindenburg
saga continues , as the allegations are
being thrown back and forth between the
interconglomerate and the U.S based
research firm. the standoff started with
a research report by Hindenburg, which
accused adani group of malpractices that
led to a steep drop in adani Group
shares. adani then issued a response on
Sunday criticizing the U.S firm’s report.
then Hindenburg retorted to adani’s
detailed response. the U.S firm said that
it believes in India’s growth story ,and
added that the adani group which has
draped itself in the Indian flag is
looting the country and holding back
India’s progress. last week hindenburg’s
report claimed that the adani group had
links with offshore tax Havens and its
exposure to high debt was a concern. the
report also showed adani group’s stock
price was inflated and had significant
downside risks, that too at a time when
the group’s Flagship company adani
Enterprises launched India’s largest
second reshare offering to raise 2.5
billion dollars. but the firm’s share
price which rose on Monday , to stall a
two-day plunge is still below the offer
price , raising questions about its
viability the shares of other adani
firms though extended their steep fall
for the third straight day.
on Sunday adani refuted the report’s
warnings about high debt levels and
usage of tax Havens . adani in a 413 page
report asserted , that it has made the
required disclosures and has met with
all regulations . adani group called
hindenburg’s research as malicious and
baseless . in response Hindenburg rejected
the adani group’s detailed report and
said , fraud cannot be obfuscated by
nationalism or a bloated response that
ignores every key allegation we raised.
adani group has said that they will not
change the follow-on offer and expect a
solid investor response despite the
latest situation. still there were no
bids from investors for the flagship
firms offer. on Monday concerns about the
group’s finances have also been there
throughout the tycoons rapid rise. Gotham
adani started his Empire in 1988 as a
Commodities Trader, with his company
listed on Indian stock exchanges in 1994.
he has since risen to the world’s
richest list ,driven by a sharp rise in
valuations of the stocks office
companies with some jumping more than
1500 percent over the last three years.
despite the crash in valuations he is
still the seventh richest in the world.
according to Forbes he is Asia’s richest
man as well,
the Hindenburg report alleges that the
Indian conglomerate resorted to stock
manipulation use of shell companies for
illegal tax savings, and accounting fraud
systems. the U.S short sellers scading
report also alleges that Gotham adani’s
elder brother, vinod shantilal shahadani
is in charge of maze like net network of
illegal offshore shelf firms . hinenberg
alleges vinod adani and his close
friends control Mauritius shell entities
and that many of the vinod adani
associate entities have no signs of
operations, employees addresses ,phone
numbers or a meaningful online presence.
earlier vinod adani’s name had featured
in the controversial Panama papers in
2016 and Pandora papers in 2021.
according to Media reports the Panama
papers consist of 11.5 million stolen
documents that were published starting
on April 3rd 2016. totaling to 2.6
terabyte of data. more than 214 000
offshore firms financial and client
information is described in the
documents.
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