A negative report has caused huge losses to Asia’s richest and world’s fourth richest Gautam Adani. After January 24, 2023, the shares of Adani Group’s listed companies fell so drastically that in one stroke, about $ 6 billion (Rs 4,89,20,64,00,000) was cleared from Gautam Adani’s net worth. went. However, the big questions that have been raised in this report have been clarified by the Adani Group and are preparing to fight an all-out battle.
Anderson started the company in 2017
First of all, let’s talk about the American research firm Hindenburg, whose negative report has created an uproar. Its founder is Nathan Anderson. Anderson, who received a graduate degree in International Business from the University of Connecticut, started his career with FactSet Research Systems Inc., a data company. Here his work was related to investment management companies. Then in the year 2017, he started his short-selling firm Hindenburg Research.
This works ‘Hindenburg Research’
Hindenburg Research is a forensic financial research firm that analyzes equity, credit and derivatives. In Hindenburg, a detailed report is prepared on the detection of disturbances in any company and then it is published. In these, factors such as accounting irregularities, deficiencies at the management level and undisclosed related party transactions are specially considered. It bets against the target company to earn profits. It is written on the website of the firm that it monitors ‘Man-Made Disasters’.
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The name of the firm is taken from an accident
The Hindenburg company is named after the Hindenburg airship accident that took place on May 6, 1937, in Manchester Township, New Jersey. Since its launch in the year 2017, till now this firm has made major disclosures related to alleged irregularities in about 16 companies. Twitter Inc. There was a lot of discussion regarding its report. Hindenburg keeps a track record of all wrong doings in the corporate world and then short these companies. This firm also makes profit by placing bets against these target companies. Now Hindenburg has put forward its research report regarding Gautam Adani, the richest person in Asia.
Questions raised on Adani Group companies
Nathan Anderson, the founder of Hindenburg Research, has previously been an ambulance driver in Israel. He considers Harry Markpoulos as his role model, who is an analyst and is known for exposing Bernie Madoff’s fraud scheme. In the research report of Andersen regarding Adani Group, questions have been raised on the loans (Adani Group Debt) of all companies of Adani Group. In this, it has been claimed that the 7 major companies of the group which are listed in the stock market have more than 85 percent overvalues. In the latest report of Hindenburg Research, 88 questions have been asked to Adani Group.
Tsunami in Adani shares after the report
After the arrival of this research report, the sentiments of the investors of Adani Group companies have been adversely affected and due to this there has been a sharp decline in the shares of all the companies. After the arrival of this report, on Wednesday, the shares of Adani’s companies took a dive of 6 to 7 percent and this also affected Gautam Adani’s net worth.
After the report came where he had lost a huge amount of $6 billion in a single day. On Friday, the last trading day of the week, there is a decline in them. On the other hand, in the last two trading days, the market value of Adani Group’s shares has decreased by Rs 2.37 lakh crore. According to a Business Today report, the MCap of 10 Adani Group stocks fell 12 per cent to Rs 16.83 lakh crore from Rs 19.20 lakh crore on January 24.
By 9.50 am, the stock of Adani Transmission slipped 12.23% or Rs 308 to Rs 2,209.75. At the same time, the shares of Adani Total Gas Ltd fell by 14.31 percent and were trading at the level of 3,136.35. Apart from this, shares of Adani Green Energy fell 8.22% to Rs 1,705.00, Adani Ports fell 2.34% to Rs 696, Adani Power fell 5% to Rs 247.95, Adani Wilmar fell 5% to Rs 516.85, Adani Enterprises shares With a fall of 2.20%, it had come to the level of Rs 3,314.25.
Adani Group gave its clarification
In this negative report by Nathan Anderson, while giving his clarification in response to the questions raised regarding the companies of Adani Group, he has taken a dig at the research firm. Releasing a statement on behalf of the Adani Group, it has been said that preparations are being made for a legal battle against Hindenburg. In the statement issued on January 26 (Adani Group Statement), it was said that this is a malicious report. This is a malicious combination of misinformation and baseless and defamatory allegations. Post its publication, the sentiment of our shareholders and investors has been adversely affected. Due to its impact, the shares of group companies are continuously falling.
