Stocks Drop as Investment Research Firm Accusing Indian Conglomerate of Fraud

Must Read

A recent report from Hindenburg Research claims that Indian family-owned powerhouse Adani Group has engaged in a years-long fraud scheme and stock market manipulation. Adani denies all allegations.

According to the report published by the young, tiny US-based research firm Hindenburg Research, the firm built by Asia’s richest man, Gautam Adani, has been engaging in fraud and stock market manipulation.

CNN Business senior editor Allison Morrow reported that “Hindenburg stunned investors when it released a report based on what it said was a two-year investigation into the Adani Group, one of India’s largest multinational conglomerates.” Morrow added that the report accused Adani and his conglomerate of pulling off ‘the largest con in corporate history.’

“Hindenburg accused the company of “brazen stock manipulation” and accounting fraud that’s taken place over decades. Hindenburg said Adani Group shares are massively overvalued, and it has taken a short position (more on that in a minute) on them, meaning Hindenburg wins when Adani shares fall,” Morrow added.

The 32,000-word report included allegations that the conglomerate had a ‘convoluted, interlinked corporate structure’ and was concluded with 88 questions for the Adani group. However, according to Diksha Madhok, editor and writer for CNN Business, Adani’s response did not answer these questions.

Madhok reported that Hindenburg’s Twitter post said that “Adani Group has attempted to conflate its meteoric rise and the wealth of its Chairman, Gautam Adani, with the success of India itself. Regarding substance, Adani’s 413-page response only included about 30 pages focused on issues related to our report.”

Hindenburg further mentioned that Adani’s response consisted of court records, high-level financials, general information, and details on irrelevant corporate initiatives, topics that do not address the report.

Following the publication of the report, the group stocks fell immensely. By Friday, the Adani group lost $51 billion in value, and Adani’s net worth went down by $30 billion, according to Bloomberg Billionaire Index. Adani’s net worth of $92 billion still keeps him on the list of wealthiest people in the world.

- Advertisement -spot_img
Latest News
- Advertisement -spot_img

More Articles Like This

- Advertisement -spot_img