A controversial, albeit data-filled, report from Hindenburg research has seemingly provided Adani, one of the biggest Indian business houses, a blow that is being measured in Billions. Here are some major impacts of that report on Adani Industries & the Indian Stock Market.: Adani Stocks crashed over 20% Broader Markets lost Rs.10.73 lakh crores in under 48hrsGautam Adani, the famed promoter of Adani group lost Rs. 4.17 lakh crores in just 2 days
Adani dropped from Number 3 to Number 7 on the Global Richest List
The fear gauge India VIX shot up to 13%
Adani Stocks are seemingly in a free-fall since then Here’s an in-depth look into the Hindenburg Report: The forensic financial research firm Hindenburg accuses the Adani Group of –Brazen stock manipulation Accounting fraud scheme over the course of decades
Having a network of 38 overseas shell companies in offshore tax havens like Mauritius and the Caribbean Islands linked to Adani family members These overseas shell companies were used to artificially boost share prices
Debt-Fuelled overvaluation: Adani Group companies were collectively overvalued on India’s stock market by more than 80%Adani Group companies had "substantial debt", which has put the entire group on a "precarious financial footing" Shares in seven Adani listed companies have 85% downside on a fundamental basis due to "sky-high valuations".17 billion USD of alleged money laundering, theft of taxpayer funds, and corruption that was previously investigated by four government agencies that looked into Adani holdings
The report was extremely ill-timed, for Adani: Adani was just about to raise Rs 20,000 crore from an open offer to investorsThe funds were to go towards the ambitious $50 Billion Green Hydrogen project Adani wanted to set up three giga-factories - one each to manufacture solar modules, wind turbines and hydrogen electrolysers by 2030. India had just on 4th Jan 2023 approved the National Green Hydrogen Mission that aimed to make India a Global Hub for the production, utilization and export of Green Hydrogen and its derivatives time of rampant speculation & accusations. Adani has openly challenged the authenticity of the report. People are wondering if there is a possibility of truth in these allegations. Adani's meteoric rise has raised a lot of eyebrows, everywhere. Is LIC doubling down on the FPO spotlight the Adani due to the promoter’s proximity to the central government? Will Indian banks be able to withstand the pressure on the Rs. 80000 crore debt to Adani Group?
Wait for more as we come back with Part 2 of this report.
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