gattaca Posted January 26, 2023 Share Posted January 26, 2023 (edited) "Today we reveal the findings of our 2-year investigation, presenting evidence that the INR 17.8 trillion (U.S. $218 billion) Indian conglomerate Adani Group has engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades," Hindenburg said in its report. https://www.cnbc.com/amp/2023/01/25/adani-group-hindenburg-short-position.html Edited January 26, 2023 by gattaca Link to comment Share on other sites More sharing options...
gattaca Posted January 26, 2023 Author Share Posted January 26, 2023 Damn seems like a big accusation. Link to comment Share on other sites More sharing options...
gattaca Posted January 26, 2023 Author Share Posted January 26, 2023 It might come crashing down for Adani with the high debt. Link to comment Share on other sites More sharing options...
Khota Posted January 26, 2023 Share Posted January 26, 2023 These are huge allegations with fraud written all over it. If true, some people should be looking at jail time. Link to comment Share on other sites More sharing options...
Prakat Posted January 26, 2023 Share Posted January 26, 2023 They are an economic liability to the country. Overdrawn debts from nationalized banks that are underwritten by the deposits of hardworking Indians. Thankfully India is deeply linked to the global finance system which will help us from getting taken for a ride. Under_Score, Chakdephatte, nevada and 1 other 2 2 Link to comment Share on other sites More sharing options...
velu Posted January 26, 2023 Share Posted January 26, 2023 Short seller firm Hindenburg announced its short position in Adani Group companies ravishingravi 1 Link to comment Share on other sites More sharing options...
gattaca Posted January 26, 2023 Author Share Posted January 26, 2023 15 minutes ago, MultiB48 said: First modi and then adani,no surprises there. Not everything is a conspiracy. Trump supporters used the same and they do that even after the insurrection. Forget modi. Adani companies has lot of debt he keeps using new companies and borrows money and funds new companies. He built his empires on pack of debt cards which might crumble sooner than later. Khota 1 Link to comment Share on other sites More sharing options...
Khota Posted January 26, 2023 Share Posted January 26, 2023 8 hours ago, MultiB48 said: First modi and then adani,no surprises there. You are reading too much into it. Hidenburg does not care about Modi. They sure do care how few individuals manipulate stocks. This is not the first time they have found fraud. Link to comment Share on other sites More sharing options...
R!TTER Posted January 26, 2023 Share Posted January 26, 2023 11 hours ago, gattaca said: "Today we reveal the findings of our 2-year investigation, presenting evidence that the INR 17.8 trillion (U.S. $218 billion) Indian conglomerate Adani Group has engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades," Hindenburg said in its report. https://www.cnbc.com/amp/2023/01/25/adani-group-hindenburg-short-position.html It's Hindenburg - you should update the title given it's one of the most (in)famous names from the 20th century! gattaca 1 Link to comment Share on other sites More sharing options...
Khota Posted January 26, 2023 Share Posted January 26, 2023 @gattaca Adnani group can prove these folks are wrong or there is truth to it. India is not a banana republic where individuals are allowed to amass wealth in not so honest fashion. These reports make the country stronger not weak. Link to comment Share on other sites More sharing options...
gattaca Posted January 26, 2023 Author Share Posted January 26, 2023 41 minutes ago, Khota said: @gattaca Adnani group can prove these folks are wrong or there is truth to it. India is not a banana republic where individuals are allowed to amass wealth in not so honest fashion. These reports make the country stronger not weak. If they are correct they should drag this company to court for causing depreciation of stock value. Khota 1 Link to comment Share on other sites More sharing options...
G_B_ Posted January 26, 2023 Share Posted January 26, 2023 Adani is over leveraged. There is no doubt in that. But the accusations on shell companies need addressing. Take them to court in usa n india Prakat, ravishingravi and Khota 3 Link to comment Share on other sites More sharing options...
Khota Posted January 26, 2023 Share Posted January 26, 2023 5 hours ago, gattaca said: If they are correct they should drag this company to court for causing depreciation of stock value. 13 minutes ago, G_B_ said: Adani is over leveraged. There is no doubt in that. But the accusations on shell companies need addressing. Take them to court in usa n india I have this feeling Adani's will not go to court. Link to comment Share on other sites More sharing options...
ravishingravi Posted January 27, 2023 Share Posted January 27, 2023 On 1/26/2023 at 1:26 AM, gattaca said: "Today we reveal the findings of our 2-year investigation, presenting evidence that the INR 17.8 trillion (U.S. $218 billion) Indian conglomerate Adani Group has engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades," Hindenburg said in its report. https://www.cnbc.com/amp/2023/01/25/adani-group-hindenburg-short-position.html I just read the report. But it seems 90 % of this is public information. Rest needs to backed by evidence especially on shell companies. Being overleveraged in not a crime. In a business life cycle, its not an anomaly. G_B_ 1 Link to comment Share on other sites More sharing options...
ravishingravi Posted January 27, 2023 Share Posted January 27, 2023 Link to comment Share on other sites More sharing options...
G_B_ Posted January 27, 2023 Share Posted January 27, 2023 13 hours ago, Khota said: I have this feeling Adani's will not go to court. I feel they will go to court in India. Which is fair as most retail shareholders and banks who are lenders are Indian entities. CAG needs to audit them. Link to comment Share on other sites More sharing options...
G_B_ Posted January 27, 2023 Share Posted January 27, 2023 1 hour ago, ravishingravi said: I just read the report. But it seems 90 % of this is public information. Rest needs to backed by evidence especially on shell companies. Being overleveraged in not a crime. In a business life cycle, its not an anomaly. More than the shell companies their leverage (in a legal sense) is defo a worry. I stayed away from adani stocks purely on this aspect. They were like a big company with a start up mentality to debt.(my view). I felt their valuations were around 30% higher than the fair price. Nature of debt needs to be probed purely from an investing pov. If its long term or short term. Are there any currency risks. What % interest are they paying on the short term debt. In 2013 when the rupee nose dived many Indian companies who had debt in USD ended up in a tough spot. Hindenberg claims of Adani ($214 billion) causing some sort of major economic collapse for a $3.5 trillion economy is pure masala for them to benefit as short sellers. Adani does own a lot of tangible assets. Its not like crypto which has 0 intrinsic values. Shareholder losses will be max be around 100 billion or so due to inflated share price. Khota 1 Link to comment Share on other sites More sharing options...
Trichromatic Posted January 27, 2023 Share Posted January 27, 2023 Quote Adani Group’s companies have lost almost $45 billion in market value in less than two sessions, as a selloff sparked by US short seller Hindenburg Research’s scathing report deepened on Friday. Shares of Adani Total Gas plummeted 19.65%, Adani Transmission tumbled 19%, Adani Green Energy plunged 15.50% and Adani Enterprises tanked 6.19%, Adani Ports and Special Economic Zone fell 5.3% Adani Wilmar dipped 5% and Adani Power declined 4.99%. 01:43 PM https://www.livemint.com/market/live-blog/share-market-live-updates-sensex-nifty-bse-nse-stock-market-today-27-01-2023-11674784052183.html Link to comment Share on other sites More sharing options...
ravishingravi Posted January 27, 2023 Share Posted January 27, 2023 3 hours ago, G_B_ said: More than the shell companies their leverage (in a legal sense) is defo a worry. I stayed away from adani stocks purely on this aspect. They were like a big company with a start up mentality to debt.(my view). I felt their valuations were around 30% higher than the fair price. Nature of debt needs to be probed purely from an investing pov. If its long term or short term. Are there any currency risks. What % interest are they paying on the short term debt. In 2013 when the rupee nose dived many Indian companies who had debt in USD ended up in a tough spot. Hindenberg claims of Adani ($214 billion) causing some sort of major economic collapse for a $3.5 trillion economy is pure masala for them to benefit as short sellers. Adani does own a lot of tangible assets. Its not like crypto which has 0 intrinsic values. Shareholder losses will be max be around 100 billion or so due to inflated share price. Hidenburg is in the business of short selling. So, I fully understand why and what they are saying. But I dont see any new info here. The exposure to public sector banks is 40 %. Adani have enough assets to back the loan. Is it over leveraged ? For sure. But given the nature of the industry, it is not an anomaly. Link to comment Share on other sites More sharing options...
G_B_ Posted January 27, 2023 Share Posted January 27, 2023 any breakdown of which PSUs have what exposure? Link to comment Share on other sites More sharing options...
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