India’s Adani Group denies allegations of fraud
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Indian conglomerate Adani Group of billionaire Gautam Adani replied to allegations of fraud that sent shares of the companies that make up the conglomerate plummeting in price, losing more than $70 billion in market capitalization to date.
Recall that last Wednesday, the American investment company Hindenburg Research announced the results of a two-year “investigation”, during which it collected “evidence that the Adani Group has been involved in brazen manipulations with shares and reporting for decades.” The company questioned the “sky-high valuation” of the Adani Group’s companies and said the conglomerate actually has “substantial debts”. The decline in quotations deepened after US investor Bill Ackman said he considers the Hindenburg Research report to be credible. After that, the quotes of the Indian group began to sharply get cheaper.
In response to Hindenburg Research’s investigations, India’s Adani Group released a 413-page report strongly denying all allegations against it. “All transactions in which we participated were in accordance with Indian law, and in accordance with it, we published all the financial details that we were required to disclose,” the Adani Group report says. “All this (Hindenburg Research accusations.— “b”) is a conflict of interest and is aimed at only one thing – to create conditions favorable for transactions with papers for the Hindenburg company, and it is known for making money on a decrease in the value of shares of companies (so-called short sales) and to do this through unworthy methods through numerous investors.”
Following the publication of the response, Adani Enterprises, the key public company of the Adani Group conglomerate, gained 4.7% in price.
How Gautam Adani became one of the three richest people on the planet in less than a year – read in material “b”.
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