Fraud cannot be obfuscated by nationalism or a bloated response that ignores every key allegation we raised, Hindenburg Research said hours after Gautam Adani group likened the damaging allegations by the US short seller to a “calculated attack” on India.

Hindenburg disagrees with Adani's nationalist narrative, says key issues not addressed

The rout in the Adani Group's shares deepens, with the conglomerate's valuation down by about $66 billion in just three trading sessions.&nbsp;The Adani Group versus the Hindenburg saga continues as the allegations are thrown back and forth between the Indian conglomerate and the US-based research firm.

The standoff started with a research report by Hindenburg, which accused the Adani Group of malpractices. That led to a steep drop in Adani Group shares.&nbsp;Adani then issued a 413-page report on Sunday, criticising the US firm's research, and called the report an attack on India.&nbsp;Then, Hindenburg retorted to Adani's detailed response.

Hindenburg rejected the Adani Group's report and said, "fraud cannot be obfuscated by nationalism or a bloated response that ignores every key allegation we raised."

The US firm said it believes in India's growth story and added that the Adani group, draped in the Indian flag, is looting the country and holding back India's progress.

Last week, Hindeburg's report claimed that the Adani Group had links with offshore tax havens, and its exposure to high debt was a concern. The report also showed Adani Group's stock price was inflated and had significant downside risks.

That was when the group's flagship company Adani Enterprises launched India's largest secondary share offering to raise $2.5 billion.&nbsp;While the firm's share price rose on Monday to stall a two-day plunge, it still closed below the offer price, raising questions about its viability.&nbsp;The shares of other Adani firms extended their steep fall for the third straight day.

On Sunday, Adani refuted the report's warnings about high debt levels and the usage of tax havens.&nbsp;Adani, in a 413-page report, asserted that it has made the required disclosures and has met with all regulations.

The Indian group called Hindenburg's research malicious and baseless.

The US short sellers' scathing report also alleges that Gautam Adani's elder brother, Vinod Shantilal Shah Adani, is in charge of a maze-like network of illegal offshore shell firms.

Hindenburg alleges Vinod Adani and his close friends control Mauritius shell entities and that many entities have no signs of operations, employees, addresses, phone numbers or a meaningful online presence.

The Indian empire, in its defence, said we are neither aware nor required to be aware of their (Vinod Adani's) 'source of funds.

Hindenburg countered that statement and asked if they were expected to believe that Gautam Adani had no idea of funds flowing from Vinod Adani's group or where they came from.

Hindenburg added that Gautam Adani could easily clear up the mystery by calling his brother or asking him at the next family dinner.

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The rout in the Adani Group's shares deepens, with the conglomerate's valuation down by about $66 billion in just three trading sessions. The Adani Group versus the Hindenburg saga continues as the allegations are thrown back and forth between the Indian conglomerate and the US-based research firm.

The rout in the Adani Group's shares deepens, with the conglomerate's valuation down by about $66 billion in just three trading sessions. The Adani Group versus the Hindenburg saga continues as the allegations are thrown back and forth between the Indian conglomerate and the US-based research firm. The standoff started with a research report by Hindenburg, which accused the Adani Group of malpractices. That led to a steep drop in Adani Group shares. Adani then issued a 413-page report on Sunday, criticising the US firm's research, and called the report an attack on India. Then, Hindenburg retorted to Adani's detailed response. Hindenburg rejected the Adani Group's report and said, "fraud cannot be obfuscated by nationalism or a bloated response that ignores every key allegation we raised." The US firm said it believes in India's growth story and added that the Adani group, draped in the Indian flag, is looting the country and holding back India's progress. Last week, Hindeburg's report claimed that the Adani Group had links with offshore tax havens, and its exposure to high debt was a concern. The report also showed Adani Group's stock price was inflated and had significant downside risks. That was when the group's flagship company Adani Enterprises launched India's largest secondary share offering to raise $2.5 billion. While the firm's share price rose on Monday to stall a two-day plunge, it still closed below the offer price, raising questions about its viability. The shares of other Adani firms extended their steep fall for the third straight day. On Sunday, Adani refuted the report's warnings about high debt levels and the usage of tax havens. Adani, in a 413-page report, asserted that it has made the required disclosures and has met with all regulations. The Indian group called Hindenburg's research malicious and baseless. The US short sellers' scathing report also alleges that Gautam Adani's elder brother, Vinod Shantilal Shah Adani, is in charge of a maze-like network of illegal offshore shell firms. Hindenburg alleges Vinod Adani and his close friends control Mauritius shell entities and that many entities have no signs of operations, employees, addresses, phone numbers or a meaningful online presence. The Indian empire, in its defence, said we are neither aware nor required to be aware of their (Vinod Adani's) 'source of funds. Hindenburg countered that statement and asked if they were expected to believe that Gautam Adani had no idea of funds flowing from Vinod Adani's group or where they came from. Hindenburg added that Gautam Adani could easily clear up the mystery by calling his brother or asking him at the next family dinner. WATCH WION LIVE HERE:

Adani Group's losses at $66 billion as Hindenburg digs its heels in

The Adani Group shares are in a free fall declining for the second straight day after US short seller Hindenburg research is scathing reports on the conglomerates. The fall in the heavyweight shares weighed on broader Indian Benchmark indexes which have also plunged to three-month laws.

India: After Hindenburg's report, Adani group's shares in free fall

Shares of Indian firm&nbsp;Adani Enterprises sank nearly 20% on Friday after a scathing report by a U.S. short-seller triggered a rout in the conglomerate's listed firms, casting doubts on how investors will respond to the company's record $2.45 billion secondary sale.&nbsp;Seven listed companies of the Adani conglomerate — controlled by one of the world's richest men Gautam Adani — have lost a combined $45 billion in market capitalisation since Wednesday, with the U.S. bonds of Adani firms also falling after Hindenburg Research flagged concerns in a Jan. 24 report about debt levels and the use of tax havens.

The rout took shares of Adani Enterprises, the group's flagship company, well below the offer price of its secondary sale which kicked off on Friday.

The Securities and Exchange Board of India (SEBI), the country's capital markets regulator, is studying the Hindenburg report and may use it to aid its own ongoing probe into offshore fund holdings of Adani Group, two sources told Reuters. Spokespersons for the regulator had no immediate comment.

Adani Group has dismissed the Hindenburg report as baseless and said it is considering whether to take legal action against the New York-based firm. It did not immediately respond to a request for comment on the SEBI's investigations.

With a net worth of $97.6 billion, billionaire Gautam Adani is now the world's seventh richest man, according to Forbes, slipping from the third position he held before the Hindenburg report.

Adani met the county's power minister R.K. Singh on Friday in New Delhi, according to a source familiar with the matter. The agenda of the meeting was not immediately known.

The billionaire hails from the western state of Gujarat, the home state of Prime Minister Narendra Modi. The stunning market selloff has cast a shadow over Adani Enterprises' secondary share sale. The anchor portion of the sale saw participation from investors, including the Abu Dhabi Investment Authority, on Wednesday.

"There were heavy positions in Adani group (shares), the way they have risen in the last couple of years," said Neeraj Dewan, director at Quantum Securities in New Delhi.

"This is a classic case of panic selling," he said, noting the concerns were also spreading to Indian banks with exposure to Adani Group's debt.

The index tracking state-run banks slid 6.6%, while the main Nifty Bank index fell 3.5%.

CLSA estimates that Indian banks were exposed to about 40% of the Rs 2 trillion ($24.53 billion) of Adani Group debt in the fiscal year to March 2022.&nbsp;

As of 0818 GMT, investors, mostly retail, had bid for around 266,000 shares of Adani Enterprises, compared with the 45.5 million on offer, according to BSE exchange data. Bidding for retail investors will close on Jan. 31.

The share sale is being managed by Jefferies, India's SBI Capital Markets, Axis Capital, and ICICI Securities among others.

The firm has set a floor price of Rs 3,112&nbsp;($38.22) a share and a cap of Rs 3,276. But on Friday, the stock had slumped to as low as Rs 2,721.65&nbsp;— well below the lower end of the price offering.

Shares of other listed Adani firms also plummeted, with Adani Transmission Ltd, Adani Total Gas, Adani Green Energy and Adani Ports sinking 20% each.

"The sell-off is seriously extreme ... it has clearly dented the overall investor sentiment in the market," said Saurabh Jain, Assistant Vice-President, Research, at SMC Global Securities.

In its report, Hindenburg said key listed Adani Group companies had "substantial debt", putting the conglomerate on a "precarious financial footing", and that "sky-high valuations" had pushed the share prices of seven listed Adani companies as much as 85% beyond actual value.

Billionaire U.S. investor Bill Ackman said on Thursday that he found the Hindenburg report "highly credible and extremely well researched."

Hindenburg said it held short positions in Adani through its U.S.-traded bonds and non-Indian-traded derivative instruments, meaning it is betting that their price would fall.

Dollar bonds issued by entities of India's Adani Group tumbled on Friday.

Adani Group has repeatedly faced and dismissed concern about debt levels. It defended itself in a presentation titled "Myths of Short Seller" on Thursday, saying deleveraging by promoters — or key shareholders — was "in a high growth phase".

Jefferies in a client note said Adani Group had shared details of debt and leverage levels, and that it does not "see material risk arising to the Indian banking sector".

Adani Group's consolidated gross debt stood at Rs 1.9 trillion ($23.34 billion), Jefferies said.

Adani has said its debt is at a manageable level and that no investor has raised any concern.

The Adani conglomerate has been diversifying its business interests and last year it bought cement firms ACC and Ambuja Cements from Switzerland's Holcim for $10.5 billion. ACC stock was down 15% on Friday, while Ambuja plunged up to 25%.

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Shares of Indian firm Adani Enterprises sank nearly 20% on Friday after a scathing report by a U.S. short-seller triggered a rout in the conglomerate's listed firms, casting doubts on how investors will respond to the company's record $2.

Shares of Indian firm Adani Enterprises sank nearly 20% on Friday after a scathing report by a U.S. short-seller triggered a rout in the conglomerate's listed firms, casting doubts on how investors will respond to the company's record $2.45 billion secondary sale. Seven listed companies of the Adani conglomerate — controlled by one of the world's richest men Gautam Adani — have lost a combined $45 billion in market capitalisation since Wednesday, with the U.S. bonds of Adani firms also falling after Hindenburg Research flagged concerns in a Jan. 24 report about debt levels and the use of tax havens. The rout took shares of Adani Enterprises, the group's flagship company, well below the offer price of its secondary sale which kicked off on Friday. The Securities and Exchange Board of India (SEBI), the country's capital markets regulator, is studying the Hindenburg report and may use it to aid its own ongoing probe into offshore fund holdings of Adani Group, two sources told Reuters. Spokespersons for the regulator had no immediate comment. Adani Group has dismissed the Hindenburg report as baseless and said it is considering whether to take legal action against the New York-based firm. It did not immediately respond to a request for comment on the SEBI's investigations. With a net worth of $97.6 billion, billionaire Gautam Adani is now the world's seventh richest man, according to Forbes, slipping from the third position he held before the Hindenburg report. Adani met the county's power minister R.K. Singh on Friday in New Delhi, according to a source familiar with the matter. The agenda of the meeting was not immediately known. The billionaire hails from the western state of Gujarat, the home state of Prime Minister Narendra Modi. The stunning market selloff has cast a shadow over Adani Enterprises' secondary share sale. The anchor portion of the sale saw participation from investors, including the Abu Dhabi Investment Authority, on Wednesday. "There were heavy positions in Adani group (shares), the way they have risen in the last couple of years," said Neeraj Dewan, director at Quantum Securities in New Delhi. "This is a classic case of panic selling," he said, noting the concerns were also spreading to Indian banks with exposure to Adani Group's debt. The index tracking state-run banks slid 6.6%, while the main Nifty Bank index fell 3.5%. CLSA estimates that Indian banks were exposed to about 40% of the Rs 2 trillion ($24.53 billion) of Adani Group debt in the fiscal year to March 2022. As of 0818 GMT, investors, mostly retail, had bid for around 266,000 shares of Adani Enterprises, compared with the 45.5 million on offer, according to BSE exchange data. Bidding for retail investors will close on Jan. 31. The share sale is being managed by Jefferies, India's SBI Capital Markets, Axis Capital, and ICICI Securities among others. The firm has set a floor price of Rs 3,112 ($38.22) a share and a cap of Rs 3,276. But on Friday, the stock had slumped to as low as Rs 2,721.65 — well below the lower end of the price offering. Shares of other listed Adani firms also plummeted, with Adani Transmission Ltd, Adani Total Gas, Adani Green Energy and Adani Ports sinking 20% each. "The sell-off is seriously extreme ... it has clearly dented the overall investor sentiment in the market," said Saurabh Jain, Assistant Vice-President, Research, at SMC Global Securities. In its report, Hindenburg said key listed Adani Group companies had "substantial debt", putting the conglomerate on a "precarious financial footing", and that "sky-high valuations" had pushed the share prices of seven listed Adani companies as much as 85% beyond actual value. Billionaire U.S. investor Bill Ackman said on Thursday that he found the Hindenburg report "highly credible and extremely well researched." Hindenburg said it held short positions in Adani through its U.S.-traded bonds and non-Indian-traded derivative instruments, meaning it is betting that their price would fall. Dollar bonds issued by entities of India's Adani Group tumbled on Friday. Adani Group has repeatedly faced and dismissed concern about debt levels. It defended itself in a presentation titled "Myths of Short Seller" on Thursday, saying deleveraging by promoters — or key shareholders — was "in a high growth phase". Jefferies in a client note said Adani Group had shared details of debt and leverage levels, and that it does not "see material risk arising to the Indian banking sector". Adani Group's consolidated gross debt stood at Rs 1.9 trillion ($23.34 billion), Jefferies said. Adani has said its debt is at a manageable level and that no investor has raised any concern. The Adani conglomerate has been diversifying its business interests and last year it bought cement firms ACC and Ambuja Cements from Switzerland's Holcim for $10.5 billion. ACC stock was down 15% on Friday, while Ambuja plunged up to 25%. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

India: Adani Group shares tank, rout touches $45 billion, clouding record share sale

The Adani Group shares are in a free fall declining for the second straight day after US seller Hindenburg research scaling report on the conglomerate.

India: Adani Group shares fall for second day; Adani Power, Wilmar shares hit lower bands

Short-seller Hindenburg Research disclosed on Wednesday short positions in India's Adani Group, citing potential stock manipulation and accounting fraud in a report. The allegations sent bonds and shares in the conglomerate's companies down.&nbsp;Hindenburg has a track record of finding corporate wrongdoings and placing bets against the companies.

WHAT IS HINDENBURG RESEARCH ?

Founded in 2017 by Nathan Anderson, Hindenburg Research is a forensic financial research firm which analyses equity, credit and derivatives. On its website, Hindenburg says it looks for "man-made disasters," such as accounting irregularities, mismanagement and undisclosed related-party transactions. The company invests its own capital.

It was named after the high-profile disaster of the Hindenburg airship in 1937 which ignited as it flew into New Jersey. After finding potential wrongdoings, Hindenburg usually publishes a report explaining the case and bets against the target company, hoping to make a profit.

WHO IS HINDENBURG'S FOUNDER?

Nathan Anderson, who graduated from the University of Connecticut with a degree in international business, started his career in finance at data company FactSet Research Systems Inc, where he worked with investment management companies.

"I realized they were doing a lot of run-of-the-mill analysis, there was a lot of conformity," he told the Wall Street Journal (WSJ) in 2020. He also did a brief earlier stint as an ambulance driver in Israel. The short-seller says on his LinkedIn page that it gave him "experience thinking and acting under extreme pressure". Anderson has said in interviews that Harry Markpolos, an analyst who first flagged Bernie Madoff's fraud scheme, is his role model.

WHAT IS HINDENBURG'S MOST HIGH-PROFILE BET?

Hindenburg is best known for its bet against electric truck maker Nikola Corp in September 2020, which generated "a big win," he told the WSJ, declining to specify the amount.

The short-seller said Nikola deceived investors about its technological developments. Anderson challenged a video Nikola produced showing its electric truck cruising at high speed — in fact the vehicle was rolled down a hill.

A U.S. jury convicted Nikola's founder Trevor Milton, Nikola's founder last year of fraud over allegations he lied to investors. The company agreed in 2021 to pay $125 million to settle with the U.S. Securities and Exchange Commission over its representations to investors. Nikola debuted as a listed company in June 2020 and its valuation reached $34 billion some days after, surpassing Ford Motor. Now, it is worth $1.34 billion. Hindenburg says whistleblowers and former employees helped it with findings.

HOW MANY COMPANIES HAS HINDENBURG TARGETED?

Hindenburg has flagged potential wrongdoing in at least 16 companies since 2017, according to its website. Last year, it took a short and then a long position in Twitter Inc. In May, Hindenburg said it was short because it believed that Elon Musk's $44-billion offer to take the company private could get repriced lower if the world's richest person walked away from the deal. In July, Anderson disclosed a "significant long position",&nbsp;betting against Musk. The deal for Twitter closed in October at the original price. 
&nbsp;

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Short-seller Hindenburg Research disclosed on Wednesday short positions in India's Adani Group, citing potential stock manipulation and accounting fraud in a report.

Short-seller Hindenburg Research disclosed on Wednesday short positions in India's Adani Group, citing potential stock manipulation and accounting fraud in a report. The allegations sent bonds and shares in the conglomerate's companies down. Hindenburg has a track record of finding corporate wrongdoings and placing bets against the companies. WHAT IS HINDENBURG RESEARCH ? Founded in 2017 by Nathan Anderson, Hindenburg Research is a forensic financial research firm which analyses equity, credit and derivatives. On its website, Hindenburg says it looks for "man-made disasters," such as accounting irregularities, mismanagement and undisclosed related-party transactions. The company invests its own capital. It was named after the high-profile disaster of the Hindenburg airship in 1937 which ignited as it flew into New Jersey. After finding potential wrongdoings, Hindenburg usually publishes a report explaining the case and bets against the target company, hoping to make a profit. WHO IS HINDENBURG'S FOUNDER? Nathan Anderson, who graduated from the University of Connecticut with a degree in international business, started his career in finance at data company FactSet Research Systems Inc, where he worked with investment management companies. "I realized they were doing a lot of run-of-the-mill analysis, there was a lot of conformity," he told the Wall Street Journal (WSJ) in 2020. He also did a brief earlier stint as an ambulance driver in Israel. The short-seller says on his LinkedIn page that it gave him "experience thinking and acting under extreme pressure". Anderson has said in interviews that Harry Markpolos, an analyst who first flagged Bernie Madoff's fraud scheme, is his role model. WHAT IS HINDENBURG'S MOST HIGH-PROFILE BET? Hindenburg is best known for its bet against electric truck maker Nikola Corp in September 2020, which generated "a big win," he told the WSJ, declining to specify the amount. The short-seller said Nikola deceived investors about its technological developments. Anderson challenged a video Nikola produced showing its electric truck cruising at high speed — in fact the vehicle was rolled down a hill. A U.S. jury convicted Nikola's founder Trevor Milton, Nikola's founder last year of fraud over allegations he lied to investors. The company agreed in 2021 to pay $125 million to settle with the U.S. Securities and Exchange Commission over its representations to investors. Nikola debuted as a listed company in June 2020 and its valuation reached $34 billion some days after, surpassing Ford Motor. Now, it is worth $1.34 billion. Hindenburg says whistleblowers and former employees helped it with findings. HOW MANY COMPANIES HAS HINDENBURG TARGETED? Hindenburg has flagged potential wrongdoing in at least 16 companies since 2017, according to its website. Last year, it took a short and then a long position in Twitter Inc. In May, Hindenburg said it was short because it believed that Elon Musk's $44-billion offer to take the company private could get repriced lower if the world's richest person walked away from the deal. In July, Anderson disclosed a "significant long position", betting against Musk. The deal for Twitter closed in October at the original price. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Explainer: Who is behind Hindenburg, the company that is shorting Adani?

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