I've read the 98 pages report of #Hindenburg Research so you do not have to review and understand it . Below are crucial points explained in non professional's terms:
HINDENBURG RESEARCH SAYS:
Today (25th Jan. 2023) 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.
Gautam Adani, Founder and Chairman of the Adani Group, has amassed a net worth of roughly $120 billion, adding over $100 billion in the past 3 years largely through stock price appreciation in the group’s 7 key listed companies, which have spiked an average of 819% in that period.
Our research involved speaking with dozens of individuals, including former senior executives of the Adani Group, reviewing thousands of documents, and conducting diligence site visits in almost half a dozen countries.
Even if you ignore the findings of our investigation and take the financials of Adani Group at face value, its 7 key listed companies have 85% downside purely on a fundamental basis owing to sky-high valuations.
1. fiscal Red Flags 🚩 5 of 7 crucial listed companies have reported ‘ current rates ’ below 1, indicating near- term liquidity pressure. 🚩 4 of 7 listed companies are on verge of delisting threshold due to protagonist power of further than 75 🚩 Adani Enterprises changed 5 CFOs in last 8 times, a crucial red flag indicating implicit account issues 2. unskillful Adjudicators 🚩 Independent adjudicator of Adani Enterprise and Adani Total gas is a bitsy establishment called Shah Dhandharia & Co. They've no website. Only 4 mates and 11 workers. 🚩 inspection mates subscribing off financials were 23 and 24 times old. lately out of academy within no position to handle and affirm such a complex commercial structure. 3. Fake and Unreliable Foreign Investors 🚩 5 out of 5 FIIs invested in the Adani group have 97 of means concentrated in Adani Stocks. This is a blatant case of attention threat and exactly the contrary of what FIIs generally do. 🚩 The CEOs and MDs of these FIIs were preliminarily involved inmulti-billion bone transnational fraud. One of them has a close alliance with a notorious stock manipulator Ketan Parekh. 🚩 These finances feel to be stock parking realities of the Adani group and manipulating delivery volumes of Adani Stocks. Also, involved in' Wash Trading' viz buying and dealing the same stocks to pump intraday trading volumes ( substantiation handed in the report) 4. Family effects & Related Party sale 🚩 Gautam Adani's sisters Rajesh & Vinod and family- in- law Samir Vora are in top operation positions in group companies and coastal realities. All three of them have been indicted of serious fraud and arrested in history. 🚩 Vinod Adani controls 38 Mauritius companies with no signs of operations, or workers. They all are registered at the same address and have no meaningful online presence( fake websites with dupe- pasted information) 🚩 These companies have moved billions of bones into Indian Adani realities without affiliated party exposure and the nature of the deals. The finances also feel to be used to wangle Adani's financials and make it look creditworthy and fit for loan against stocks. The Research establishment has openly challenged Gautam Adani to answer 88 questions listed in the report If he truly embraces translucency as he claims. and stated that" We believe the Adani Group has been suitable to operate a large, obvious fraud in broad daylight in large part because investors, intelligencers, citizens, and indeed politicians have been hysterical to speak out for fear of reprisal" Issued by Yusuf Bhandarkar from The Mumbai Multimedia Studio - The MMS the statement that this is a timely played gimmick just before Adani Enterprise FPO and this establishment has no way communicated them for seeking explanation.
