[ad_1]
The scholarship bleeding from Gautam Adani’s empire continues.
Asia’s richest man is still unable to put out the fire that was started on January 24 by the New York investment company Hindenburg Research. the Indian juggernaut.
This empire, with interests in ports, energy and cement, especially in India, owes its expansion to acquisitions of mainly debt-financed companies. Hindenburg used this last point in particular to fuel his report, which casts doubt on the group’s governance.
Hindenburg is credited with bringing down Trevor Milton, Nikola’s founder (NKLA) – Get a free report, whom he accused of building the electric heavy truck maker on lies. Last October, Milton was found guilty in federal court of three counts of fraud involving false statements he made to drive up the value of Nikola’s stock.
“We have found evidence of brutal accounting fraud, stock manipulation and money laundering at Adani that have taken place over decades,” Hindenburg wrote in a report.
“Adani has accomplished this gigantic feat with the help of government facilitators and a cottage industry of international companies that make these activities possible.”
‘Calculated attack on India’
The report describes a galaxy of empty entities based in tax havens – the Caribbean, Mauritius and the United Arab Emirates – controlled by the Adani family.
The short-seller alleges that the conglomerate used the shell companies to boost its revenues and manipulate the stock prices of its various entities.
These accusations come as the Adani empire tries to attract the general public and foreign institutional investors to an offer of 200 billion rupees, or $2.5 billion.
After two statements that failed to convince investors, the Adani empire responded on Jan. 29 by publishing a 413-page report, which the company says answers most of the questions Hindenburg asked.
This report argues that Hindenburg’s allegations are baseless.
“The report seeks answers to ’88 questions’ – 65 of which relate to matters duly disclosed by Adani Portfolio companies in their annual reports available on their websites, offering memorandums, financial statements and stock market information from time to time ,” Adan said.
“None of these 88 questions are based on independent or journalistic fact-finding. They are simply selective regurgitations of public disclosures or rhetorical innuendo that color rumor as fact,” it continued.
The Indian group adds that the attacks against it are actually targeting India.
“This is not just an unfounded attack on a specific company, but a calculated attack on India, the independence, integrity and quality of Indian institutions, and India’s growth story and ambition,” said Adani.
Market value of $68 billion evaporated
Hindenburg responded quickly. It accuses Adani of resorting to nationalism and failing to address the questions and concerns raised in the report.
“Fraud cannot be covered up by nationalism or an inflated response that ignores every major allegation we have made,” the short-seller said in a statement. pronunciation.
Adani Group “predictably tried to shift the focus away from substantive issues and instead instigate a nationalist narrative, claiming that our report amounted to a ‘calculated attack on India. the wealth of its chairman, Gautam Adani, with the success of India itself.”
For now, markets appear to be siding with Hindenburg as the price drop that began after Hindenburg’s accusations has continued for a third trading session.
The shares of most of the entities that make up the Adani empire have been penalized again by investors on the Mumbai Stock Exchange. Adani Total Gas and Adani Green Energy both fell by the daily cap of 20%, Adani Transmission fell more than 15% and Adani Power lost 5%. Adani Ports and Special Economic Zone erased previous gains and finished the session roughly flat.
Flagship Adani Enterprises ended the session up 4.8% after falling around 10% in the session. Overall, the conglomerate lost about $17 billion in market cap, according to Bloomberg News. In total, the Adani empire has seen $68 billion in market value evaporate in three trading sessions.
Last week, the conglomerate lost $51 billion in market value in the two sessions that followed the release of the Hindenburg report.
This stock market slump has also affected the personal fortune of founder Gautam Adani, whose fortune has shrunk by $26.3 billion since the allegations against him and his empire.
His net worth was valued at $92.7 billion by the Bloomberg Billionaires Index on January 29. But with the stock market’s fall on January 30, this fortune has undoubtedly declined further as it is linked to the billionaire’s assets.
Last September, Adani became the second richest man in the world behind Elon Musk with a fortune that had risen to $150 billion. He then finished the year fourth in the world. He is currently seventh on the list.
|
Sources 2/ https://www.thestreet.com/technology/billionaire-adanis-empire-loses-almost-20-billion-more-in-one-day The mention sources can contact us to remove/changing this article |
[ad_2]