Adani Short Seller Hindenburg Has Opened A Pandora Box On Indi
BloombergJan 29, 2023
Shares of India's Adani firms — led by Asia's richest man Gautam Adani — sank between 5% and 20% on Monday, wiping out approximately $65B off its market value.
Flagship Adani Enterprises' $2.5B secondary share sale closed at ₹2,892.85 ($35.47), 7% below the ₹3,112 ($38.17) lower end of the offer price band due to weakened sentiment among investors.
Hindenburg is a well-respected research outlet in New York's finance circles. Its reports are usually highly credible and extremely well-researched. Allegations of financial irregularities in one of India's largest conglomerates cannot be brushed under the carpet. Hindenburg's research is just the tip of the iceberg; it's a reminder that many Indian companies may be using the same dirty tactics to cement control, boost their valuation, and fuel their expansion with debt.
This is an unwarranted, calculated attack on India and the independence, integrity, and quality of Indian institutions. Hindenburg Research's allegations are nothing short of a calculated securities fraud by a short-seller. Their modus operandi behind the explosive report is working, with Adani firms losing over $65B in market value over three trading days. Public investors lost a great deal by wiping off a large amount of investor wealth, while Hindenburg shamefully made a windfall.