Unexpected Twist in Adani Story (of Rise and Rise)

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Sukla Sen

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Jan 28, 2023, 7:42:40 PM1/28/23

to foil-l, Say NO 2 UID Core Group

From 2014 to (September) 2022 -- over (approx.) eight years of Modi rule at the Centre the wealth of Adani grew twentyfold. Over roughly the same period the Ambani group -- the second-most favoured one -- grew about 4.75 times. Indian GDP grew 1.25 times.

Now some -- almost sudden -- interesting developments, in broadly chronological order.

Unexpected Twist in Adani Story (of Rise and Rise)*

I. * On Jan. 24, Hindenburg Research group -- an investment research firm based in NYC -- came out with a report that claimed:

Today we reveal the findings of our 2-year investigation, presenting evidence that the INR 17.8 trillion (U.S. $218 billion) Indian conglomerate Adani Group has engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades.

* Gautam Adani, Founder and Chairman of the Adani Group, has amassed a net worth of roughly $120 billion, adding over $100 billion in the past 3 years largely through stock price appreciation in the group’s 7 key listed companies, which have spiked an average of 819% in that period.

(Ref.: <https://pdffile.co.in/hindenburg-research-adani-report/> and <https://hindenburgresearch.com/adani/>.)

II. It immediately triggers a sharp slide in the value of Adani group shares.

AA. <https://indianexpress.com/article/explained/explained-economics/what-is-hindenburg-research-accused-adani-fraud-8404531/>.

BB. <https://groundreport.in/hindenburg-effect-adani-slips-to-7th-position-in-the-worlds-richest-list/>.

CC. <https://www.thehindubusinessline.com/markets/four-adani-listed-companies-on-brink-of-delisting-threshold-hindenburg-research/article66431137.ece>.

Also relevant: DD. <https://m.economictimes.com/markets/stocks/news/hindenburg-impact-adani-enterprises-fpo-subscribed-just-1-on-day-1/articleshow/97378542.cms>.

III. Adani threatens Hindenburg with legal action:

<https://www.moneylife.in/article/adani-threatens-hindenburg-welcomes-legal-action-stocks-continue-to-crash-on-friday/69639.html>.

IV. Hindenburg hits back: <https://twitter.com/HindenburgRes/status/1618602694436081668>.

V. Congress flags the serious implications for the people of India and demands probe: <https://www.theweek.in/news/india/2023/01/27/hidenburg-report-congress-demands-sebi-rbi-probe-into-adani-group.html>.

VI. An interesting comment: <https://www.reddit.com/r/india/comments/10mf54o/adani_bubble_was_going_to_burst_one_day_and_im/>.

VII. Evidently, the modality by which the GVK group was brought to its knees and made to sell the Mumbai airport to Adani for a song cannot be deployed in the instant case.