oppn parties The Adani Group-Hindenburg Spat

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  • Supreme Court dismisses industry bodies' plea to stop the SBI from disclosing the numbers of the electoral bonds
  • NDA finalizes seat sharing in Bihar - BJP 17, JD(U) 16 aqnd LJP 5
  • Election Commission removes Home secretaries of Gujarat, UP, Bihar, HP, Uttarakhand and Jharkhand and the DGP of Bengal
  • Telangana governor Tamilsai Soundararajan resigned from his post and is likely to contest for the BJP from Chennai
  • ED claims K Kavitha of the BRS paid Kejriwal and Sisodia Rs 100cr in the alleged liquor scam in Delhi. AAP says this is a ploy to malign their names
  • Supreme Court tells SBI not to be selective and disclose full details of electoral bonds
  • With the US Department of Justice rpobing bribery charges against Adani group companies, Adani group shares and bonds are under pressure
  • Narayan Murthy gifts Infosys shares worth Rs 240cr to his 4-month-old grandson
  • Tata Sons to sell Rs 9362cr worth shares of TCS to pare debt
  • Stocks were positive on Monday - Sesex climbed 104 points to 72748 and Nifty 32 points to 22055
  • IOA dissolves the ad-hoc panel and gives full control of WFI to elected panel headed by Brij Bhushan aide Sanjay Singh
  • Controversy erupts after BJP leader Tathagata Roy prescribes the cicumcision test for those seeking citizenship under CAA. TMC calls it a 'vulgar jibe'
  • Rahul Gandhi concludes his Bharat Jodo Nyay Yatra in Mumbai, holds a mega rally at Shivaji Park and says the BJP does not have the courage to change the Constitution despite making a lot of noise in that regard
  • ED issues two fresh summons to Delhi CM Arvind Kejriwal in the liqour excise case just a day after he got bail in the earlier cases of ignoring the summons
  • A 14-year-old girl killed herself after she was strip-searched at school in Bagalkot in Karnataka
Election Commission orders removal of home secretaries of 6 states and the DGP of Bengal
oppn parties
The Adani Group-Hindenburg Spat

By Linus Garg
First publised on 2023-01-27 06:58:29

About the Author

Sunil Garodia Linus tackles things head-on. He takes sides in his analysis and it fits excellently with our editorial policy. No 'maybe's' and 'allegedly' for him, only things in black and white.
The Hindenburg report on the Adani group is nothing new. There have been murmurs about the group having spread itself too fast and too thin in the past too. But Hindenburg (just a 5-year organization based in the US) claims that it conducted a detailed study on the group for the last two years and has come up with some allegedly damning material that proves that the group's bubble is going to bust soon. It is a trading outfit that has now started short selling Adani shares. The Adani group, on its part, has dismissed the report as being 'malicious' and has issued an internal report, which is a point-by-point rebuttal that claims that all is well with the group. It further said that the timing of the Hindenburg report suggests that it has vested interest to scuttle the Rs 20000cr Adani Enterprises, the flagship company of the group, FPO that opened on January 27. In response to Adani's charges, Hindenburg has dared the group to sue it in the US.

When someone grows so big so fast, there always will be allegations that something is amiss. But it has to be considered that the Adani group has chosen its sectors well and has invested wisely. It may have stretched itself thin but the fact is that it is managing well and unless there is a run on its shares (like what is happening after the Hindenburg report), there is little chance of the group going bust. Further, whatever Hindenburg might think of itself and the effort it has put in bringing out the report against the Adani group, the fact is that it is a relatively new organization and unless what it has put out is seconded and supported by others, it will remain just one organization's view. It is also a fact that in the sensitive Indian stock market that thrives on rumours and is highly sensitive to such reports, the Adani group will have a hard time in controlling the fall of its shares. This will be extremely damaging, both for the Adani group and the market sentiment, in the short term.