News from the Financial Associated Press on January 26 (Editor Zhao Hao)On Tuesday (January 24) local time, the well-known American short-selling agency Hindenburg Research LLC (Hindenburg Research LLC) released a report on its official website saying that India’s Adani Group has huge fraud and its financial situation is in jeopardy.
During the two-year investigation, the agency spoke with dozens of people, including former Adani Group executives, reviewed thousands of documents and conducted due diligence in nearly six countries, Hindenburg said in the report. .
At present, there is evidence that the Adani GroupParticipated in unethical “stock manipulation and accounting fraud” over the past few decades.
Adani Group was founded by Gautam Adani (Gautam Adani), who currently ranks third on the Forbes Global Rich List. The main business of the group is energy, and more than 60% of its income comes from coal business. Other fields cover seaports, airports, cement and data center.
Hindenburg wrote that the Adani Group’s seven major listed companies had taken on significant debt, five of which hadCurrent ratio is less than 1The capital chain is very tight, and the financial situation of the entire group is in jeopardy.
The agency clearly pointed out that the valuations of the current seven major listed companies are too high. From the perspective of financial fundamentals,85% downside potential。
Affected by Hindenburg’s short-selling report, the share prices of Adani Group’s seven listed companies in India fell by an average of 4.6%, and the total market value decreased by about US$12 billion. As a result, Gautam Adani’s net worth evaporated by US$6.5 billion in one day, and now stands at US$119.1 billion.
In recent years, Hindenburg has almost been short-selling US electric vehicle stocks “in succession”. The most classic case is to expose the lies of the electric truck company Nikola.
Given Hindenburg’s reputation, investors were generally inclined to believe their report first, said Guillermo Hernandez Sampere, head of trading at asset manager MPPM GmbH.
In response, Adani Group said Hindenburg’s report was a “malicious, selective combination of misinformation” and stressed that the company “has always complied with the law”. Chief Financial Officer Jugeshinder Singh told the media that Hindenburg’s intention was to damage the group’s reputation and sabotage the company’s future fundraising projects.
It is worth mentioning that this is not the first time that Adani Group’s financial status has been questioned. In September last year, CreditSights, a credit research arm of Fitch, pointed out that Adani Group was “over-leveraged”.