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| Hindenburg Vs Adani |
Due to Hindenburg Research Published on 24/01/2023 Adani Group has lost about 5 Lakh Crore and Gautam Adani ( Founder and Chairman Adani Group ) has slipped at 22 from 3rd in Forbes Billionaires List. In previous early hours Adani Group has withdrawn it's FPO which itself is another big loss
Hindenburg Research -Published on
The Adani Group, a large Indian
conglomerate with a net worth of approximately $218 billion, has engaged in a
long-standing scheme of stock manipulation and accounting fraud, according to
the investigation's findings.
The group's founder and chairman, Gautam
Adani, has seen his net worth soar to around $120 billion, largely due to the
sharp increase in stock prices of the group's 7 key listed companies over the
past three years, with an average rise of 819%.
The investigation involved numerous
interviews with former executives of the Adani Group, a review of thousands of
documents, and site visits to several countries. The findings even suggest that
the 7 key listed companies are overvalued and have 85% downside risk based
solely on their financial fundamentals.
The Adani Group's top leadership is
dominated by Adani family members, with 8 of the 22 key leaders being related
to Gautam Adani. This places the group's finances and key decisions in the
hands of a few individuals.
The group has been the focus of 4 major
government fraud investigations in the past, alleging money laundering, theft
of taxpayer funds, and corruption, totalling an estimated $17 billion. Members
of the Adani family are said to have created offshore shell entities in tax
haven jurisdictions to generate fake or illegitimate turnover and siphon money
from the listed companies.
Several Adani family members have faced
accusations of financial fraud, including Rajesh Adani, Gautam Adani's younger
brother, and Samir Vora, his brother-in-law. Both were subsequently promoted
within the Adani Group despite their criminal allegations.
Gautam Adani's elder brother, Vinod Adani,
has been described as an elusive figure and has been at the center of many of
the government's investigations into the Adani Group. The investigation found
that Vinod Adani controls a labyrinth of offshore shell entities, many of which
serve to park stocks and launder money.
The investigation also uncovered that many
of the supposed "public" funds holding Adani stock are actually
offshore entities with concealed beneficial ownership and little to no
diversification, putting the listed companies at risk of delisting due to high
promoter ownership. The Securities and Exchange Board of India (SEBI) is
investigating these offshore funds.
key findings from the research, but I would advise you to consult the original source material for a more comprehensive understanding.
Research indicates that offshore shells and funds tied to the Adani Group make up many of the largest "public" holders of Adani stock, an issue that would result in the delisting of Adani companies if the rules of the Indian securities regulator SEBI were enforced. Many of the supposed "public" funds exhibit irregularities such as being based in offshore tax-havens like Mauritius, with beneficial ownership concealed through nominee directors, and holding portfolios almost exclusively consisting of shares in Adani listed companies. RTI requests they filed with SEBI confirm that these offshore funds are under investigation for more than a year.
Adani Group has previously been the focus of major government fraud investigations that have alleged money laundering, theft of taxpayer funds, and corruption, totaling an estimated US $17 billion. Adani family members have been accused of cooperating to create offshore shell entities in tax-haven jurisdictions and generating fake import/export documentation to siphon money from the listed companies. Gautam Adani's brother Rajesh Adani was accused of playing a central role in a diamond trading import/export scheme, while Gautam Adani's brother-in-law Samir Vora was accused of being a ringleader of the same scam.
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