Adani Vs Hindenburg

What is Hindenburg Research?
Anderson’s firm - technically a research and trading outfit, not a hedge fund with outside investors -
is less than five years old and wagers its own money in the markets. Even in Manhattan’s financial
circles, Anderson is hardly a big name. The closely held firm specializes in forensic financial
research, according to its website. It first attracted Wall Street’s attention in 2020 for raising serious
questions about electric-vehicle makers Nikola Corp. and Lordstown Motors Corp.
What are Adani’s companies?

In addition to Adani Enterprises, which is also in coal mining, there are:
Adani Green Energy Ltd. (Renewable power generation)
Adani Transmission Ltd. (Power transmission)
Adani Total Gas Ltd. (Gas distribution)
Adani Power Ltd. (Coal-fired power generation)
The Adani Group also runs a real estate business, a shadow banking firm named Adani Capital and
an edible oil and food business via a venture with Singapore-based Wilmar International Ltd.
What exactly did Hindenburg team do.

They got an understanding that something is fishy at Adani group and then they did something
remarkable in today's world
They WORKED HARD :)
And got to the depths of various transactions reported by the Adani group.
On the other side of their hardwork - they found that the companies lending 100s of millions of
dollars to the group were located in small residential colonies and were owned by Adani's
former employees
They also found that almost 50% of the trade volumes in the shares was happening through
offshore funds which had 95%+ of their assets tied up in adani shares.
Analysis of Hindenburg’s on Adani Group:

Adani's corporate governance, financial performance, and business practises received harsh criticism
in the report.
Here are some of the key points in the report:
Business practises: According to the report, Adani has a history of questionable business practises,
including fraud and environmental violations. Additionally, the company is charged with utilising its
political connections to secure favourable treatment from the Indian government.
2. Corporate governance: According to Hindenburg Research, Gautam Adani controls Adani to the
disadvantage of minority shareholders and the company lacks effective corporate governance.
3. Financial performance: The report contends that Adani's financial performance is exaggerated and
that the business has a dismal track record of keeping its commitments. Additionally, it asserts that
Adani has a track record of exaggerating its earnings and having a high debt load.
4. Port business: Adani's port operations make up a sizeable portion of its overall operations, and the
report alleges that the company has abused its political connections to gain an unfair competitive
advantage.
5. Environmental issues: According to Hindenburg Research, Adani has a history of violating

environmental laws, and the company's proposed Carmichael coal mine in Australia poses a
significant environmental risk. Several Adani Group businesses have been accused, according to
reports. The Hindenburg Research report claims that Adani Group's businesses across a number of
industries have been experiencing losses.
Some of the businesses highlighted in the report are:
1. Ports: According to the report, fierce competition has caused Adani's port business to see a decline
in profits.
2. Power: Hindenburg Research argues that Adani’s power business is struggling due to high levels
of debt and low returns.
3. Real Estate: The report claims that Adani’s real estate projects have been slow to take off, leading
to losses.
4. Agribusiness: Hindenburg Research argues that Adani’s agribusiness ventures have struggled due
to mismanagement and poor performance.
5. Trading and Distribution: The report claims that Adani’s trading and distribution businesses are
facing significant losses due to a lack of competitiveness. The Hindenburg Research report has been
a source of controversy in the financial and business communities, with Adani Group denying the
claims made in the report. Despite this, the report raises important questions about the financial
performance and business practices of the Adani Group. In addition to the businesses highlighted in
the report, Adani Group has a presence in several other industries, including renewable energy,
infrastructure, logistics, and defence. The company is one of the largest conglomerates in India and
has been rapidly expanding its operations both domestically and internationally. One of the main
concerns raised by the Hindenburg Research report is the issue of corporate governance at Adani
Group. The report claims that the company is controlled by its founder, Gautam Adani, to the
detriment of minority shareholders. This is a common issue in many large conglomerates, and it is
important for companies to ensure that their corporate governance practices are transparent and in
line with best practices. Another issue raised by the report is Adani’s impact on the environment. The
report claims that the company has a history of environmental violations and that its proposed
Carmichael coal mine in Australia is a major environmental risk. Environmental sustainability is a
growing concern for companies around the world, and it is important for companies to take their
environmental responsibilities seriously.
Adani Group response:

The claims made in the Hindenburg Research report have been disputed, and Adani Group has filed a
lawsuit against the research company. In response to the article, the company has released a number
of statements disputing the claims and defending its business practises. The Adani Group has
emphasised both its dedication to ethical business conduct and its track record of completing projects
that are both environmentally friendly and socially conscious. The business has made it clear that it
adheres to all applicable laws and regulations in full and that it is dedicated to conducting business in
an environmentally friendly way. The Hindenburg Research report, according to Adani, is based on
false and misleading information and was written with the intention of harming the company's
reputation. To improve its net debt ratio, Adani Ports and Special Economic Zone is planning to
repay ₹5,000 crore in debt by the next financial year 2023-25, informed the company's whole-time
director and Chief Executive Officer Karan Adani. Adani group had announced that its promoters
will pre-pay $1,114 million for the release of pledged shares before their maturity period which was
due in September 2023. With the prepayment, the company would be able to release 168.27 million
shares of Adani Ports & Special Economic Zone Ltd, 11.77 million shares of Adani Transmission
Ltd, and 27.56 million shares of Adani Green Energy Ltd.
Repercussions of Hindenburg report on Adani stocks:

The Adani Group has lost $118 billion in 10 days, a 50 per cent decline since Hindenburg accused
the group of stock manipulation, improper use of tax havens, money laundering and mounting
debts.Gautam Adani, who was displaced from his position as Asia's richest man, said in a statement
this week that the interest of investors was paramount and called off Rs 20,000 crore share sale in his
flagship company, Adani Enterprises.
Adani Enterprises Ltd - Took 635 days to reach Rs 4185 (ATH) from 1025 and just 44 days to fall.
-Adani Total Gas -Took 445 days to reach to Rs 4000 (ATH) from 1464 and Just 15 days to fall.
-Adani Ports and SEZ-Took 663 days to reach to Rs 986 (ATH) from 398 and 136 days to fall.
Adani Transmission -Took 388 days to reach to Rs 4234 (ATH) from 1200 and 143 days to fall.
-Adani Green -Took 525 days to reach to Rs 3035 (ATH) from 850 and 294 days to fall.
-Adani Power - Took 144 days to reach to Rs 432(ATH) from 175 and 169 days to fall.
-Adani Wilmar corrected around 40% in current Calendar year
Adani Enterprises will be removed from the Dow Jones Sustainability Indices (DJSI) due to
allegations of stock manipulation & accounting fraud, announced by S&P Dow Jones Indices ,
effective 7th February
Lets understand Dow Jones and how it will affect Adani :

The DJSI indices are a leading benchmark for sustainable investing, measuring the performance of
companies based on their Environmental, Social, Governance, and Economic (ESG) criteria.
It represents the top 10% of the largest 2,500 companies in the S&P Global Broad Market Index
(BMI) based on long-term economic, environmental and social criteria.
The indices serve as a benchmark for investors who consider sustainability in their portfolios and aim
to encourage companies to improve their corporate sustainability practices.
Adani Enterprises was added to the DJSI Emerging Markets Index on Dec. 19, 2022.
The removal of Adani Enterprises from the DJSI will likely impact the company's reputation and
make its shares less appealing to environmentally conscious investors.
In response to unusual stock behavior, the NSE has placed Adani Enterprises along with Adani Ports
& SEZ and Ambuja Cements (Adani currently holds 63.15% stake in Ambuja Cement) under
additional surveillance measures. This means that trading in their shares now requires a 100% margin
in order to curb speculation and short selling.
Thank
You
Team
Edge

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What is Hindenburg Research?

What are Adani’s companies?

What exactly did Hindenburg team do.

Analysis of Hindenburg’s on Adani Group:

Here are some of the key points in the report:

5. Environmental issues: According to Hindenburg Research, Adani has a history of violating

Adani Group response:

Repercussions of Hindenburg report on Adani stocks:

Lets understand Dow Jones and how it will affect Adani :

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