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Adani - Hindenburg Controversy
Indian billionaire Gautam Adani faced allegations of financial irregularities by a financial research firm Hindenburg
Here is everything you need to know about the Adani-Hindenburg controversy
According to Forbes, Adani was the world's third-richest man but due to the ongoing allegations, the billionaire's rank plunged to number 15
Hindenburg Research is a financial research firm founded by Nathan Anderson that studies equity, credit, and derivatives
Hindenburg Research released a report alleging Adani of misusing offshore tax havens and flagged concerns about high debts and valuations of 7 listed companies
It also disclosed that it holds 'short positions' in the Indian conglomerate Adani Enterprises through U.S.-traded bonds and non-Indian traded derivatives
Adani Group issued a 413-page statement and called the report 'baseless'. The group said that the allegations are 'unsubstantiated speculations'
Reuters reported that India's market regulator has increased scrutiny of Adani Group's deals over the past years and will provide fresh details in the report
Hindenburg raised the issue of financial controls and said that there have been many changes observed in Chief Financial Officers (CFOs) of listed Adani companies
On February 1, Adani Enterprises called off its $2.5 billion share sale. Its share price dropped to another 28.45% in Mumbai
Later, Adani also issued a video message to investors explaining the withdrawal of a fully subscribed follow-on public offer (FPO) on February 2, 2023