What Hindenburg's report says about Adani Group

The Adani group is accused of engaging in accounting fraud and price manipulation over a ten-year period, according to a report by the US research firm Hindenburg.

The report was released on January 24, 2023. Soon after the publication of this report, the market value of the Adani group companies fell by about 80,000 crores.

The businesses owned by the Adani Group are listed below.

a) Adani Green Energy

b) Adani Power

c) Adani Total Gas

d) Adani Transmission

e) Adani Enterprise

f) Adani Ports

g) Ambuja Cements

h) ACC

i) Adani Wilmar

The key findouts from Hindenburg report are noted below.

1. The investigation was carried out for 2 years.

2. Gauthan Adani has networth of $120 Billion. Of which $100 billion was accumulated in last three years largely on account of stock appreciation.

3. Seven listed entities of adani group has downside valuation to the extent of 85% on fundamental basis.

4. 5 out of 7 listed entities reported Current Ratio below 1.

5. It's a family controlled business. 8 out of 22 top position leaders are from Adani family.

6. 38 companies Incorporated in Mauritius found to be shell and are controlled by Gautham Adani's elder brother Vinod Adani.

7. Billions of dollors have been moved to indian listed entities through these Mauritius entities.

8. Four entities may get delisted due to higher promoter holding.

9. SEBI confirms that investigation on offshore investment is ongoing from last one and a half year.

10. The companies are debt rich and have taken loan by pledging the shares that are priced heavily.

https://hindenburgresearch.com/adani/?s=09