Adani Hindenburg Fight - What is the story

Adani Hindenburg Fight - What is the story

Since the detailed report of Hindenburg research has come on Adani, the market and the country have started selling it. Adani Enterprises is continuously falling after this report, Gautam Adani has become 7th of the 3rd Richest and what will happen to Adani in this pure country.

Let's see the full story of Adani Vs Hindenburg. On January 24, 2023, US based Hindenburg Research published its report which revealed how Adani Group, which is India's second largest conglomerate, is involved in stock manipulation and accounting fraud scheme.

In the investigation report of your year, the agency has revealed a lot of things..like,

Gautami Adani's offshore shell companies, his relatives' involvement,

Fraud, scam, accusations, cases on Adani family members, SEBI investigations, SEBI rulings, stock manipulation, money laundering, accounting irregularities, breach of financial obligations etc.

Aur last mai Adani Group se 88 saawaal ka jawab .and yeh bhi kaha ki agar Gautam Adani wants transparency, toh woh inna saawaal ka jawab se aasani se de hain. Background story.

Ab hum sab iss baat ka gawah hain ki kaise kuch saalon mai Gautam Adani ka worth has grown exponentially from 1.6 lakh crore to 9.6 lakh crore within a span of 3 years – making him the 3rd richest man on the planet. And how the market value of their companies' is also increasing very fast.

 Aur Hindenburg report is coming like this when Adani withdraws its 20,000 crore FPO - the biggest India has ever seen. But the report came in 2 days that Adani's 4.1 lakh crore market was cleared..And only Adani whole Indian stock market was affected.

Main Concern Around Adani Group

 Concern 1-Extremely OVERVALUED. Adani Group has allegedly manipulated their Stock Prices to grow them exponentially - that make them 85% Overvalued (funding shell companies and creating artificial demand)

Concern 2-Adani Group Allegedly Manipulated its Accounts to Get Loans from Banks.

 Concern 3-Big Red Flag - In past 8 years 4 CFOs have resigned from the Company (questioning the stability in the top leadership).

Concern 4- Adani Group has allegedly taken too much of leverage and pledged their shares - increasing companies' liquidity risk. Also, the family members of Adani Group have several cases and accusations against them.

Concern 5-Current Ratio is Less than 1 (giving risk to sort-term liquidity risk).

Adani has given a 413-page reply to Hindenburg's 100-page in-depth report and the group's CFO has been bogus and misrepresenting 68 questions. Aur yeh bhi kaha hai ki research nahi hai proper hai balki copy pasted hai from his report.

Hindenburg ne reply mai kaha ki kaise 413 page mai mere 30 page hi relevant hai,,report se related reply hain. Unhone kahan hai ki 68 questions ka unhe reply hi nahi mila hai.

Now there is a question that what impact will it have on Adani's shares and on FPO? According to the report, the shares of Adani group are 85% overvalued. Fundamentally, it is true.By the way, the shares of Adani group are like a bubble whose fear of bursting is almost all the investors.

 If investment is seen, apart from retail investors, DII investors are the only ones investing in LIC. This is also the answer investors get that whether they have to invest in Adani shares or they have to take care.

Adani Enterprises' Rs 20,000 crore follow-on public offer (FPO) received bids for 5,59,544 shares on Day 2 so far. The issue is subscribed 1 per cent of the total size of 5,41,772 shares, as of 10.21 am. The issue has received tepid response so far amid a sharp fall in shares of Adani Enterprises. While the scrip recovered some lost ground in Monday's trade, it is still trading below the FPO price band of Rs 3,112-3,276 per share.