Today we are going to take a look at the talk of the town Hindenberg research on the Adani companies.Starting from the basic, Indian Research LLC is a US investment research founded by Nathan Anderson,with the purpose of focus on activist short selling . The form compiles public reports via its website that ilh corporate road and malfunctions. The company was named after Hindenburg disaster in 1937.Nikola , Clover health and Lordstown Motors world companies that have become subjects of these reports.
On January 24, 2023 children park research published a report getting hold the Adani group of financial misconduct and stock manipulation. Just led to a stark decline in the stock prices of Adani group companies; as much as about 83%. Following the release of the reports, stock dropped to a low of Rs 1017. The stock wasn’t able to fully recover to its pre – report levels until May 23 ,2024.As on August 9 2024 shares of Adani enterprises are trading at around Rs 3188 ,which is about 6% low below their price to the Hindenberg report. Talking specifically about Adani Wilmar, it’s performance continuous to disappoint investors. The stock has a 50 % drop in value and its still struggling to recover to its previous value.It is currently trading at Rs 385 , which is still about 33% below its pre decline level.
In contrary to Adani Wilmar, which stock of Adani power experience day 52% decline however it has doubled in value from the time the research report was released.Same is a scenario with Adani Ports, it has reflected a 101 % increase from the closing price at the time of the report’s release.Moving on to Adani solutions it has seen a partial recovery in the stock market price however it is evident that the stock continuous to be heavily affected by the initial report.Now coming on to the reactions of the Adani group of companies on the Hindenberg report.Adani group has announce the latest televisions from Hindenberg terming them as ‘malicious’ ‘mischievous’ and manipulative in nature.
Adani’s Point of View on the isssue
In a statement issued to the stock exchanges, Adani group has replied saying that the latest claims made by the Hindenberg report by saying that its overseas holding structures are fully transparent in nature and is fully available to the public for verification.Meanwhile SEBI share price and Madhabi Puri Buch and her husband Dhaval Buch also termed the report as ‘baseless’ ‘devoid of any truth’ and an attempted character assassination of the company just to bring down the share price.Hindenberg research stated that SEBI chairperson Madhabi Puri Buch had a stake in obscure offshore entities;used in Adani’s ‘money siphoning scandal ‘ in its new report.
As per the report , both of them were investing in the same Bermuda and Mauritius based offshore funds which was related to Gautam Adani’s brother ,Vinod Adani .Adani group has completely rejected this allegations , which are a recycling of discredited things that have been thoroughly investigated , proved to be baseless and already dismissed by the Hon’ble supreme court in January 2024.
