Adani Group of Companies VS Hindenburg Controversy.
The company founded in 2017 makes an allegation on a company that has been since 1980s.Yes, you read it right Adani Group is an Indian multinational conglomerate, It was founded by Gautam Adani in 1988. In April 2021, Adani Group became the third Indian conglomerate to cross US$100 billion in market capitalisation. And the Hindenburg Research LLC is an investment research firm, founded in 2017.
But how after Hindenburg Research published a report on Adani Group, headed by Gautam Adani, on Tuesday 24th January, said that it is presenting evidence that the Group has engaged in a 'brazen stock' manipulation and accounting fraud scheme over the course of decades.
Chairman @gautam_adani's address to investors after withdrawal of the fully subscribed AEL FPO#GrowthWithGoodness #NationBuilding #AdaniGroup pic.twitter.com/f9yaYrxCzx
— Adani Group (@AdaniOnline) February 2, 2023
Here is the key points to know that Hindenburg has made against Adani:
1. Adani Group has engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades. 2. Its 7 key listed companies have 85% downside purely on a fundamental basis owing to sky-high valuations. 3. The company have also taken on substantial debt including pledging shares of their inflated stock for loans, putting the entire group on precarious financial footing. 4. The 8 of 22 key leaders are Adani family members. A former executive described the Adani Group as “a family business.” 5. The report says Adani Group has previously been the focus of 4 major government fraud investigations which have alleged money laundering, theft of taxpayer funds and corruption, totalling an estimated U.S. $17 billion. 6. The report has made allegations on Adani family members too. 7. Also, many of the Vinod Adani-associated entities have no obvious signs of operations, no reported employees, no independent addresses or phone numbers and no online presence. 8. They have asked 88 questions in the report to Adani Group.
As it says Adani companies have also taken on substantial debt but in today’s world which companies do not take a substantial debt. A normal middleclass life works on loans, Emi’s etc but Adani is itself a bigger company. Also, it says the key leaders are Adani’s family member, but business is formed with family only.
Let us know few things about Gautam Adani.
Adani was born on 24 June 1962 in a Jain family in Ahmedabad, Gujarat. He has 7 siblings. He is a school and college dropout and never completed his education. Adani was keen on business, but not his father's textile business.
In February 2022, he became Asia's richest person,surpassing Mukesh Ambani. In August 2022, he was named the 3rd richest person in the world by Fortune. In January 2023, Hindenburg Research published the findings of a two-year investigation claiming that Adani had engaged in market manipulation and accounting malpractices.
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