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Hindenburg group accuses Adani group of fraud


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If I am Adani I would be extremely worried. Hindenburg using forensic accounting to track things down and so far everywhere they have pointed fingers, fraud was uncovered.

 

Hindenburg's Track Record Should Worry Adani

 

I am struggling to link this article.

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1 hour ago, G_B_ said:

Adani raised the fpo value...

 

Not much hindenberg can do now..

 

Yes, but worry for Adani still is lack of retail investors. Historically, the transition to deleveraging has always been tricky.

 

For me, this does good for Adani and all the other big corporates going forward. They are no longer being judged on Indian laws. They can all prepare the governance requirements in advance. 

 

The correction in share prices was also absolutely needed. No way high PE ratios can be justified.

 

In my view, Adani has not won the game. Its a draw with win for Indian markets. Fears of systemic crisis is atleast behind us for now. 

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On 1/30/2023 at 5:53 AM, ravishingravi said:

 

I am still trying to understand where is the scam

blatant violation of securities law with stock washing, stock parking.   I mean, an optimist spin on it could be that its just a firm taking advantage of questionable gray-zone financial engineering and leveraging for its benefit - something that other companies may also be guilty of, if they have the opportunity due to company size and jurisdictional weaknesses. 

 

 

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13 hours ago, Khota said:

If it is BS yes it should be forgotten. But if it is the truth head needs to roll.

Search Participatory P Notes. No Gvmnt in India has so far shown to have balls to ban it. All the Indian companies including Ambani Adani, Tata, Birala, HDFC, ICICI you name it do it. But Adanis have been picked

 

BTW, I was watching movie on Harshad Mehata. I thought a smarter person (Finance Minister) would have legalised or found middle ground to what Harshad did. After all, Its legal now what essentially  he did. So there in lies clue

Edited by mishra
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5 minutes ago, sandeep said:

blatant violation of securities law with stock washing, stock parking.   I mean, an optimist spin on it could be that its just a firm taking advantage of questionable gray-zone financial engineering and leveraging for its benefit - something that other companies may also be guilty of, if they have the opportunity due to company size and jurisdictional weaknesses. 

 

 

 

Well its not a violation if its not proven. I have seen many such funding and tax structuring. Yeah its not great intent. But it is within the framework.  It is as much a scam as big tech not paying taxes in US. Its not right, but it is how companies work. Finding loopholes and safe space wherever they can. Not every corporate is Tata.  

 

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4 minutes ago, mishra said:

Search Participatory P Notes. No Gvmnt in India has so far shown to have balls to ban it. All the Indian companies including Ambani Adani, Tata, Birala, HDFC, ICICI you name it do it.

 

BTW, I was watching movie on Harshad Mehata. I thought a smarter person would have legalised or found middle ground to what Harshad did. After all, Its legal now what essentially  he did. So there in lies clue

 

You cannot ban P notes. This is not that big a market as some like to believe. Imagine a 20K crore FPO is under stress. I mean the market has no depth when things get a little rough. We need FII money.  

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3 minutes ago, ravishingravi said:

 

Well its not a violation if its not proven. I have seen many such funding and tax structuring. Yeah its not great intent. But it is within the framework.  It is as much a scam as big tech not paying taxes in US. Its not right, but it is how companies work. Finding loopholes and safe space wherever they can. Not every corporate is Tata.  

 

 

yeah, I'm not an expert in finance, accounting or securities regulation - but thus far its clear that this story is a lot more complex than some sort of naive "corrupt bad business corporation exposed by investigation".  Things are a lot more murky than that.  

 

I'm reluctant to fall into the conspiracy speculation of the connect the dots type, so linking this to the BBC report etc is more than a bit.....extrapolated.  However, Hindenburg is no white knight here, they have an agenda, and when I read through their "report", even as a layman its very obvious that a lot of it is narrative building using sensational adjectives instead of hard factual evidence.  There is indeed some evidence of financial engineering that is potentially illegal, and at a mimimum worth investigating, but they are seriously hyping it up quite a bit in order to make short selling profits, that is unmistakable. 

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14 minutes ago, sandeep said:

  There is indeed some evidence of financial engineering that is potentially illegal, and at a mimimum worth investigating, but they are seriously hyping it up quite a bit in order to make short selling profits, that is unmistakable. 

No doubt on the intentions of a short selling firm... whats suspicious is the timing of the release of this report before budget (last one probably before the general elections next year) and dismissing Adanis response as jingoistic nationalism instead of rebutting atleast some of the points raised in it. No accounting firm worth their salt will just dismiss with that tweet

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4 minutes ago, diga said:

No doubt on the intentions of a short selling firm... whats suspicious is the timing of the release of this report before budget (last one probably before the general elections next year) and dismissing Adanis response as jingoistic nationalism instead of rebutting atleast some of the points raised in it. No accounting firm worth their salt will just dismiss with that tweet

yeah its a "PR" war at this point, and critics of current govt pretending that Hindenburg is some sort of white knight angel activist instead of a profiteering business with its own agenda is........self-serving and dishonest.

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32 minutes ago, diga said:

No doubt on the intentions of a short selling firm... whats suspicious is the timing of the release of this report before budget (last one probably before the general elections next year) and dismissing Adanis response as jingoistic nationalism instead of rebutting atleast some of the points raised in it. No accounting firm worth their salt will just dismiss with that tweet

 

For me, this was a smoking gun. I would imagine Hidenburg replying something like "Our report is not intended towards India, Indian regulators or even Indian people. This is isolated analysis of Adani group which we believe has resorted to unfair trade practices". But the language they used was what liberal left wing uses on social media. Which makes me wonder if there is famous hand ( which moved currency markets ) backing this report.

Edited by ravishingravi
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3 hours ago, Khota said:

You miss the point.

 

There is no point to be missed. He can now service his debts easily.

 

If they go on to sell their stake in Ambuja cement and further lower their debt then it will kill any issues permanently.

 

Its not just Advani btw. SBI has risen by 5% due to the narrative of Hindenburg that Indian banking would somehow collapse.

 

Retail investors will invest in the sensex or index funds

 

 

 

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3 hours ago, mishra said:

Search Participatory P Notes. No Gvmnt in India has so far shown to have balls to ban it. All the Indian companies including Ambani Adani, Tata, Birala, HDFC, ICICI you name it do it. But Adanis have been picked

 

BTW, I was watching movie on Harshad Mehata. I thought a smarter person (Finance Minister) would have legalised or found middle ground to what Harshad did. After all, Its legal now what essentially  he did. So there in lies clue

It is the one who does the most gets the attention. But the question is whether they did something wrong.

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2 hours ago, G_B_ said:

 

There is no point to be missed. He can now service his debts easily.

 

If they go on to sell their stake in Ambuja cement and further lower their debt then it will kill any issues permanently.

 

Its not just Advani btw. SBI has risen by 5% due to the narrative of Hindenburg that Indian banking would somehow collapse.

 

Retail investors will invest in the sensex or index funds

 

 

 

Did he artificially inflate the value of his stock. or not.

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2 hours ago, G_B_ said:

 

There is no point to be missed. He can now service his debts easily.

 

If they go on to sell their stake in Ambuja cement and further lower their debt then it will kill any issues permanently.

 

Its not just Advani btw. SBI has risen by 5% due to the narrative of Hindenburg that Indian banking would somehow collapse.

 

Retail investors will invest in the sensex or index funds

 

 

 

Most important point is the last person Hindenburg accused is doing jail time. Hindenburg is not doing this to gain attention.

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