Gautham Adani is a business tycoon who owns companies in various sectors. Adani group is a conglomerate situated in Ahmedabad, Gujarat, India. Adani is a self-taught genius who has made it to the top. He has nearly three decades of first-hand experience in the business. Through the past three decades, he has had a Midas touch. After being lauded as one of the richest men in the world, little did he know what was to come.
On January 24, The Hindenburg Research a short selling and Investment research firm published a vituperating report on The Adani flagship companies accusing them of involving in Stock manipulation and fraudulent activities. Their firm has been shadowing the Adani group for the past two years. Adani was taken by surprise as their FPO is due in two days. The internet went crazy after The Hindenburg Report resulting in a highly volatile market. The Adani group ended up withdrawing the FPO with an apology and thanking their investors for their belief in the firm.
The Face-offIn a tweet, Hindenburg Research demanded answers for accusations made against them. Adani stated at a press conference that it is a ploy to harm the company’s reputation and India’s progress. Whereas, Hindenburg Research snapped back that Adani’s recent press meeting does not substantiate any of the allegations raised and is ready to face any legal complications from Adani.
Although The Adani group has published a report that nullifies the claims of The Hindenburg Report, the shares continued to go downhill until February 8 the share price started to surge. The share prices of The Adani group as of 08.02.2023,
- Adani Enterprises Ltd – Rs.2164.25, + Rs.361.30, (20.04%)
- Adani Total gas Ltd – Rs.1319, -Rs.73.20 (5.00%)
- Adani Transmission Ltd – Rs.1314, +62.60 (5.00%)
- Adani Green Energy Ltd – Rs.802.45, -42.20, (5.00%)
- Adani Ports and Special Economic Zone Ltd – Rs.599.25, +46.10%, (8.33%)
- Adani Power Ltd – Rs.181.90, +Rs.8.65, (4.99)
- Adani Wilmar Ltd – Rs.418.80, +Rs.19.90, (4.99).
There is still a debate over whether the report by the U.S. firm is a deliberate attempt to gain public attention and generate revenue or whether Adani is guilty and the government is backing him.