#hindenburg report adani

[adanicase]

Gautam Adani’s wealth may have dropped a bit, especially during the time when the Hindenburg Report Adani was published, the group has been able to carry out its business operations with full force even with the ongoing challenges.

[tattlerystudio1]

Leave Investor Sentiment, What should the Inflationary Sentiment be?

Should we be delighted that  This report was released well in time before mom and pop retail investors got on board on Jan 31. Or,  Should we not be this cheery because, Adani & Banks single handedly rallied the economy last year. Does this signal a recession in India?

[rightnewshindi]

हिंडनबर्ग की ताजा रिपोर्ट पर आया अडानी का रिएक्शन, सेबी प्रमुख ने बताया चरित्र हनन का प्रयास

Hindenburg Report: अमेरिकी शॉर्ट सेलर फर्म हिंडनबर्ग रिसर्च की नई रिपोर्ट में सेबी प्रमुख माधबी पुरी बुच और उनके पति धवल बुच पर अडानी ग्रुप से जुड़ी एक ऑफशोर कंपनी में हिस्सेदारी रखने का आरोप लगाया गया है। इस रिपोर्ट पर अब अडानी ग्रुप की पहली प्रतिक्रिया आई है। अडानी ग्रुप ने रविवार को इन आरोपों का खंडन करते हुए कहा कि उसका सेबी चेयरपर्सन माधबी पुरी बुच से कोई व्यावसायिक संबंध नहीं है। अडानी…

[flourishloom]

Unveiling the Kotak Mahindra Bank and Hindenburg Saga: What Really Happened?

Source: Internet In a gripping turn of events, Kotak Mahindra Bank has found itself at the center of a sensational controversy involving the short-selling of Adani Enterprises’ shares. This unfolding drama, triggered by a damning report from Hindenburg Research, has led to a wave of investigations and clarifications. Here’s the story behind the headlines.The Hindenburg Report: A Market…

[sohanbir]

Adani's shares falling again on new report.

This OCCRP report has come about eight months after the release of the Hindenburg report. Hindenburg report gave a heavy blow to businessman Gautam Adani and his port-to-energy group.

Organized Crime and Corruption Reporting Projects (OCCRP) has made several claims in a new series of allegations against Adani group companies following the report of American research firm Hindenburg in January this year. OCCRP has said that millions of dollars were invested in some of the group's publicly traded shares through an 'opaque' Mauritius fund. According to a Reuters report on Thursday, the non-profit media organization said in its report that the investment pattern has 'obscured' the involvement of alleged business partners of the Adani family.

Buying and selling through offshore Structures:-

The OCCRP has opened several tax haven zones And citing a review of files from internal company emails, it said during its investigation they found at least two cases where investors bought and sold stocks of Adani group companies through such offshore structures. This OCCRP report has come about eight months after the release of the Hindenburg report. Short seller firm Hindenburg had said in its report that the Adani group had used tax haven countries like Mauritius to manipulate the shares of companies. However, the Adani group rejected all of Hindenburg's allegations. The group had said that it has always complied with the laws. Adani Group called the allegations Baseless:- In a statement to OCCRP, Adani Group said that the name of the Mauritius fund investigated by the journalists has already appeared in the Hindenburg report. The allegations are not only baseless and baseless, but are repeated from Hindenburg's allegations. Adani Group told OCCRP that it has been clearly stated that all publicly listed companies of Adani Group comply with all applicable laws including public shareholding related regulation. Two investors named in the report of OCCRP:- OCCRP named two individual investors in the report - Nasir. Ali Shaban Ahli and Chang Chung-Ling have been named as having made the alleged investments. OCCRP has said that both of them are old business partners of the Adani family. The media organization said that there is no evidence that Nasir Ali Shaban Ahli and Chang Chung-ling's money came from the Adani family. But an agreement in the reporting document, corporate records and an included email show that he traded in Adani stock and coordinated with the family. OCCRP said that their stake in Adani Holdings would exceed the estimated 75 per cent limit for insider ownership. What is OCCRP? Established in 2006, OCCRP publishes investigative news articles in partnership with media houses. According to the OCCRP website, it is funded by the Open Society Foundations, a unit of George Soares. American billionaire George Soros heads Soros Fund Management and the Open Society University Network. Read the full article

[financewalababa]

The Hindenburg report:

The Adani Group is one of India’s largest conglomerates, with interests in energy, infrastructure, and agriculture. The group has been in the news recently due to its alleged involvement in the Hindenburg report case. The Hindenburg report is a research report published by a financial analytics firm called Hindenburg Research, which made several allegations against the Adani Group, including…

[janchowk]

अडानी समूह पर शेल कंपनियों से फंड लेने के आरोप और विनोद अडानी की भूमिका

हिंडनबर्ग रिसर्च रिपोर्ट में अडानी समूह द्वारा किए गए शेल कंपनियों द्वारा निवेश और शेयरों में ओवर प्राइसिंग और अन्य घपलों के बारे में विस्तार से यह समझाया गया है कि, कैसे इस समूह ने धोखाधड़ी और राजकृपा से पिछले नौ सालों में अप्रत्याशित विकास किया और एक समय दुनिया के दूसरे सबसे अमीर घराने में शुमार किया जाने लगा। इस रिपोर्ट के आने के बाद, स्टॉक मार्केट में अडानी समूह के शेयरों के भाव गिरने लगे,…

[shrey-bhootrablogs123]

Outlook 2023, BONDS is the place to be.

OUTLOOK 2023,

        BONDS IS THE PLACE TO BE.

                                   BY

                                       SHREY BHOOTRA

                                        STANDARD 7th

           SCHOOL – THE BISHOPS SCHOOL CAMP, PUNE.

                                INTRODUCTION.

In this paper I will be talking about the outlook of 2023 and why this year bonds are a safer and better bet compared to equities.

1.   Indian stock market lags behind its global peers in 2023.

The Indian stock market, which had been a star performer in 2022 despite global headwinds, has been lagging behind its global peers since the start of 2023. The domestic benchmark indices, the Sensex and Nifty 50 gave a return of 5.78% and 4.33% in the calendar year 2022 respectively. Since the start of calendar year 2023 the Nifty 50 index has gone down from 18,197 to 17,567, while the Sensex has gone down from 61,167 to 59,745 which means they have both gone down by 4.47% and 2.33% already! The markets in 2023 started the year well before facing challenges as the month went on. The underperformance has been attributed to a range of factors, including continuous selling of FPIs, the reopening of the Chinese economy, the sell-off in the Adani group stocks and the depreciation of the Indian Rupee. On January 25th the Nifty 50 and Sensex tumbled 1.25% and 1.27% respectively, a day after the Hindenburg released a report alleging the Adani Group of certain accusations, on the following day the two indices lost another 1.61% and 1.45% in value, taking the cumulative loss to 2.83% and 2.70% in just two trading sessions. The banking stocks which had given loans to the Adani group of companies also took a brunt on concerns over the debt exposure to the Adani group, the Banking sector which had been the driving force behind the index growth over the past few years was now facing headwinds causing the Nifty 50 to underperform. According to the PTI report foreign investors pulled out Rs 28,852 crores from equities in the month of January 2023, making it the worst outflow since June 2022. This came following a net investment of Rs 11,119 crore is December 2022 and Rs36,238 crore in November. The Indian Rupee started January 2023 on a strong note, strengthening 1.60% in the first three weeks, however it gave up its gains as the month progressed and ended January with a fall of 1.18% at 81.73 against the US Dollar. The Indian Rupee ended 2022 as the worst performing currency with a fall 11.3%, its biggest annual decline since 2013. In December 2022 the global brokerage Goldman Sachs said that India is likely to underperform its peers in 2023 due to expensive valuations. The Indian market had been a strong outperformer in 2022 due to stronger domestic fundamentals, but valuations have turned expensive compared to global peers. Another cause for the equity markets not performing well is inflation, inflation in the month of January 2023 in India was 6.52% compared to 5.72% in the month of December 2022, when inflation is high it reduces the purchasing power of common households thus also having a negative effect on the equity markets. The main cause of rise in inflation in India is because of food inflation, the CPI food index rose to 5.9% in January 2023 from 4.2% in December 2022.

2.   Why are bonds the place to invest in 2023.

Since the equity markets have not been performing well since the start of the year, bonds are the next best place to invest, retail investors, DIIs and FIIs have been pulling money out of the market and have been investing in bonds. Since bonds provide a predictable income stream and have stable returns and have a lower risk people prefer to invest in bonds this year over equities. The US one year bond yield is currently at 5.0541%.

-       SHREY BHOOTRA

23.3.23

[adanicase]

It will also be able to recover from the losses that it suffered during the publication of the Hindenburg Report Adani. 

[mariacallous]

In January, after New York-based short seller Hindenburg Research released a report accusing Adani Group of accounting fraud and stock manipulation, the Indian conglomerate defended itself by appealing to nationalism. “This is … a calculated attack on India, the independence, integrity and quality of Indian institutions, and the growth story and ambition of India,” the group said in a 413-page response refuting the allegations.

It is no surprise that Adani Group tied itself to India’s “growth story.” The industrial empire of Gautam Adani, the group’s founder, has been key to Prime Minister Narendra Modi’s vision for India, which centers on big infrastructure projects as drivers of growth. In turn, Adani’s support for Modi’s nation-building plans, from airports to green hydrogen plants, has propelled his conglomerate’s meteoric rise. From 2014 to December 2022, Adani Group’s market capitalization soared from $6.5 billion to more than $223 billion.

Hindenburg’s report triggered a sudden reversal, however. The value of Adani Group’s publicly traded stocks soon fell by more than half—a rout that has continued a month after the report’s release. Modi has chosen to remain quiet about the affair, even as it has raised serious questions about India’s economy.

If Adani Group seeks refuge from criticism by tying its success to that of India’s, then the converse must also be reckoned with: The collapse of its shares represents a stress test for India’s growth project. It has cast doubt on whether Modi’s strategy of propping up a few favored corporate titans can translate into lasting results on the ground. And, beyond that, whether Modi’s India can deliver on hopes that it could become a driver of global economic growth, as China was for the past three decades.

Modi’s rise has long been intertwined with that of Adani’s. As chief minister of Gujarat from 2001 to 2014, Modi made his name through his so-called Gujarat model of development, with its large infrastructure projects, such as dams, extensive highways, and solar power plants. Adani was critical not just to constructing many of these projects but also to bringing big business around to the idea of Modi as a potential prime minister. After Modi was elected in 2014, he flew from Gujarat to his new home of New Delhi in Adani’s private jet.

As Modi became India’s most popular leader since the republic’s first prime minister, Jawaharlal Nehru, Adani’s business interests expanded. His conglomerate partnered with the government on critical infrastructure projects within India and, increasingly, abroad. Since Modi entered office, Adani’s net worth increased by more than 5,000 percent to $150 billion in September 2022, making him Asia’s richest man before the scandal. His wealth came largely on the back of winning government contracts; expanding into strategic sectors, such as clean energy and defense; and building critical infrastructure projects. For instance, Adani Group secured seven out of the eight airports that the Indian government leased out to private companies. These kinds of contracts, in turn, led to more interest in Adani Group stock from investors.

The government has undoubtedly placed its trust in Adani, but the Hindenburg report could be a stumbling block in Modi’s plans to ensure that India remains the world’s fastest-growing major economy. After the brutal stock rout, the group called off a $2.5 billion share sale and had to delay its expansion plans. A margin call followed, leading Adani to prepay a $1.1 billion loan. Meanwhile, French energy giant TotalEnergies has put on hold a $4 billion investment in an Adani Group green hydrogen project.

Over his tenure, Modi has been unwilling or unable to push through structural reform that would allow more companies to enter new sectors without significant risk-taking. He therefore has no option but to depend on national champions, such as Adani. But even among Indian billionaires, Adani is unique. Very few businesspeople enjoy the government’s confidence, can navigate dizzying state regulation, and, most of all, are willing to risk enormous amounts of capital.

In 2015, Credit Suisse published its House of Debt report, which examined the precarious debt levels of 10 prominent Indian business groups with a significant presence in various infrastructure sectors. Out of the 10 groups, many have ended up in bankruptcy courts in recent years, while others have pursued debt consolidation plans. Only one group—the Adani conglomerate—has continued to borrow and invest at a breathtaking pace.

The Economist has estimated that the combined revenues of companies controlled by Adani and fellow tycoon Mukesh Ambani, chair of India’s Reliance Industries, are equivalent to 4 percent of India’s GDP. Firms controlled by the pair also account for nearly a quarter of the capital spending of all publicly traded non-financial firms.

While many analysts fret over whether Adani Group is too big to fail, the more pertinent question is whether Adani has been too integral to the Indian economic project to fail.

Modi now faces a difficult dilemma. On the one hand, he relies heavily on large infrastructure development delivered by India’s billionaires. For example, Adani plans to develop massive renewable energy projects—and without them, India would find it challenging to fulfill its commitment to meet 50 percent of its energy requirements with renewables by 2030.

On the other hand, if Modi continues to protect Adani—as India’s opposition has alleged—by not addressing Hindenburg’s allegations, he runs the risk of undermining the credibility of India’s corporate governance and, by extension, its growth narrative.

Although India’s financial regulatory institutions are far from perfect, India has an established history of investigating and punishing financial fraud. The Adani Group scandal, however, has cast doubt on the ability of these institutions—such as the Securities and Exchange Board of India (SEBI), the country’s capital markets regulator—to operate independently.

It’s worth asking whether the Adani saga could have been anticipated, investigated, and defused long before Hindenburg came along if watchdogs had done their job.

Consider, for instance, a puzzling question that Hindenburg has sought to address: What explains the mind-boggling rise in the price of many Adani Group stocks? The price-to-earnings ratio of Adani Enterprises, the conglomerate’s flagship entity, went from 37.6 to 343.9 in just two years. But as experts have pointed out, growth of that nature is typically seen in companies in the technology sector, not brick-and-mortar industries.

There could be innocuous explanations, but the fact that the company’s board of directors didn’t examine the issue publicly opened the door for worrying allegations put forth by Hindenburg. In particular, the short seller has alleged that Adani Group’s stocks are being inflated by the conglomerate itself through secretive offshore entities.

This brings us to the question of what India’s stock market and banking regulators were doing. Long before Hindenburg came along, news outlets had pointed to the existence of three Mauritius-based funds that appeared to only invest in Adani Group companies and whose ultimate ownership was opaque. Why weren’t these funds forced to furnish details of their ownership structure at any point in the last few years and nip allegations of “round-tripping” in the bud?

In addition, SEBI continued to sign off on the conglomerate’s fundraising proposals even though the Indian government disclosed in Parliament in 2021 that SEBI had begun a probe to investigate some Adani Group companies over “non-compliance of rules.” It’s unclear what the scope of the SEBI investigation was and whether it has concluded.

For years, India’s beleaguered political opposition has accused regulatory authorities of corruption and raised allegations of crony capitalism, specifically pointing to Adani. But given the opposition’s lack of specific allegations made against SEBI, it seems more likely that the economy and stock market’s overseers are simply indifferent and plagued by inertia. Regardless, these accusations, and the Adani Group controversy, have not hurt Modi’s popularity, thanks in part to his administration’s tight control over the mainstream media.

Yet there may be consequences that stem from outside of India’s borders. It’s possible that global investors will become less bullish on India if they think that Indian business empires won’t be able to build necessary infrastructure or be reined in by domestic regulatory systems. Overseas partnerships and joint ventures could face headwinds as well, just as the Adani-TotalEnergies partnership has.

A fair, independent, and transparent probe into the allegations against Adani Group could ease these fears. Modi has so far ignored demands for one made by opposition political parties. But continuing to do so could very well be damaging to the long-term economic interests of India, and the world, even if it does not hurt Modi politically in the short term.

[fultocks]

Why Adani shares are falling now?

Some week, the American company Hindenburg Research published a report in which significant accusations levied on the richest man in India, Mr. Gautam Adani. As a result, within 30 days of the publication of this report, the Adani group of companies had to bear the brunt of losses to the tune of 70 billion. you’d want to know about the contents of this report but guys, more interesting than that is the fact

That Hindenburg has so much faith in its report that it has openly challenged the legal team of the adagio company, to file a legal case against Hindenburg, if they can they are ready for a legal suit actually if Hindenburg is prived wrong Adani won’t even need to file a case as an act of revenge because if Hindenburg’s predictions are proven wrong they will have to bear heavy losses.

[seemabhatnagar]

Expert committee was constituted by Supreme Court in the wake of hindenberg report

Background of the case : Vishal Tiwari v. Union of India & Ors.

A bunch of 04 Writ Petitions have been filed before the #SupremeCourt of India in the wake of #Hindenberg Report.

The report alleges, that the #Adani Group of companies has manipulated its share prices; failed to disclose transactions with related parties and other relevant information concerning related parties in contravention of the regulations framed by SEBI; and violated other provisions of securities laws. The report also states that Hindenburg Research has taken a short position in the Adani Group companies through US traded bonds and non-Indian traded derivative instruments.

Directions sought in Writ Petitions

The 04 #WritPetitions separately seek directions from the Apex Court;

Directions to the Union of India and the #UnionMinistryofHomeAffairs to constitute a committee headed by a retired judge of the Supreme Court to investigate the contents of the report published by Hindenburg Research;

Directions to the Union Ministry of Home Affairs to register an #FIR against Mr. Nathan Anderson (#founder of Hindenburg Research) and his associates for short selling, and for directions to recover the profits yielded by the short selling to compensate investors;

Sought a #courtmonitoredinvestigation by a #SpecialInvestigationTeam or by the Central Bureau of Investigation into the allegations of fraud and the role played by top officials of leading public sector #banks and other #lender institutions

Sought directions to any investigative authority to: (i) investigate the Adani Group companies under the supervision of a sitting judge of this Court; and (ii) investigate the role of LIC and SBI in these transactions.

Expert Committee Constituted by Apex Court

The Bench of the Apex Court comprising Hon’ble CJI Dr. D Y Chandrachud, Hon’ble Justice P S Narasimha & Hon’ble Justice J B Pardiwala vide their order dt. 02.03.23 constituted an Expert committee to protect the investors from the volatility of the kind headed by Justice Abhay Manohar Sapre, a former judge of the Supreme Court. The committee comprises Mr. O P Bhatt, Justice J P Devadhar (retired), Mr. KV Kamath,Mr. Nandan Nilekani & Mr. Somashekhar Sundaresan.

Report in two months

The Committee is requested to furnish its report in sealed cover to this Court within two months.

The Committee shall remit on the following:

Provide overall assessment of the situation including the relevant causal factors which have led to the volatility in the securities market in the recent past;

To suggest measures to strengthen investor awareness;

To investigate whether there has been regulatory failure in dealing with the alleged contravention of laws pertaining to the securities market in relation to the Adani Group or other companies; and

To suggest measures to (i) strengthen the statutory and/or regulatory framework; and (ii) secure compliance with the existing framework for the protection of investors.

The Apex Court in its order dt. 10.02.2023 noted the need of reviewing existing regulatory mechanisms in the financial sector to protect Indian investors from volatilities in the market. And suggested Solicitor General of India that to seek instructions from the Union of India on the constitution and remit of an expert committee.

SEBI’s suggestion for securing the interest of the investors:

Mandatory disclosures by listed companies to facilitate free and fair price discovery and to ensure that all investors have equal access to material information for them to be able to take informed investment decisions;

 Market systems to ensure seamless trading and settlement including volatility management;

Enforcement action in the event of misconduct in the market including fraud or violations of SEBI regulations.”

With respect to the aforesaid Writ Petitions SEBI submitted, it is already enquiring into, the allegations made in the Hindenburg report as well as the market activity immediately preceding and post the publication of the report and it will not be appropriate to report the details at this stage.

Seema Bhatnagar

[odnewsin]

Hindenburg’s Nate Anderson says stands by Adani report, closure not due to any threat

New Delhi: Activist short-seller Nathan Anderson, known for his high-profile campaigns against the likes of Adani Group, said he is closing his firm, Hindenburg Research, not because of any threat – legal or otherwise – and that he stands by all its reports. Anderson told PTI that Hindenburg’s January 2023 report accusing Adani Group of “the largest con in corporate history” was a result of…

[newsxbyte]

Supreme Court dismisses application in Hindenburg Research-Adani Group matter

The Supreme Court of India (SC) has today dismissed an application in US-based short seller firm Hindenburg-Adani Group matter, according to an ANI report. The apex court dismissed an application filed by a lawyer who challenged the bench’s August 5, 2024 registrar order which declined to register his previous application in the matter, it added. The application rejected by Registrar of apex…