By Muslim Mirror Network
Hitting back at the Adani Group’s 413-page response to its report, Hindenburg Research said that the Indian conglomerate’s response to its report “largely confirmed” the short-seller’s findings.
Hindenburg continues to short Adani Group through its US-traded bonds and non-Indian-traded derivative instruments.
“…we note that the core allegations of our report – focused on numerous suspect transactions with offshore entities – were left completely unaddressed,” Hindenburg said.
It also said that fraud cannot be obfuscated by nationalism or bloated response that ignores every key allegation.
Adani Enterprises’ $2.5 billion share sale this week has been overshadowed by Hindenburg’s report, which flagged concerns about debt levels and the use of tax havens.
The Hindenburg report had questioned how the Adani Group has used offshore entities in tax havens such as Mauritius and the Caribbean islands, adding that certain offshore funds and shell companies “surreptitiously” own stock in Adani’s listed firms.
Hindenburg’s report also said five of seven key listed Adani companies have reported current ratios, a measure of liquid assets minus near-term liabilities, of below 1 which it said suggested “a heightened short-term liquidity risk”.
According to Adani, the research report made “misleading claims around offshore entities” without any evidence whatsoever. Adani said on Thursday that it is considering taking action against Hindenburg, which responded on the same day by by saying it would welcome such a move. (With inputs from PTI)
THE DUDS IN THE INDIAN MEDIA, BANKS & GOI,DO NOT UNDERSTAND,THE AEL BUSINESS MODEL !
ASSUME THAT THE 9 ADANI SUBSIDIARIES,HAVE A MARKET CAP OF 1 TRILLION USD,WITH A 51% ADANI STAKE,HELD BY AEL.
NOW AT 51% ADANI CANNOT DILUTE EQUITY VOTING SHARES IN THE 9 COMPANIES
NOW AEL IS A PYRAMID WHICH SPAWNED THESE 9 MUSKETEERS. SO AEL SHARES IN THESE 9 ARE WORTH 510 BILLION USD ( AT 51% OF 1 TRILLION)
BUT THE MARKET CAP OF AEL IS BY ITSELF 2 TRILLION ! NOW THAT IS THE PROBLEM ! THE KOOL AID IS THAT AEL “WILL SPAWN” 10 MORE MUSKETEERS” LIKE THE 9, & THE MARKETS & BANKS BUY THAT KOOLAID,BASED ON THE PERFORMANCE OF THE 9 !
BUT THE SUCCESS OF THE 9,WAS DUE TO AGGRESSIVE LOANS & STOCK MOVEMENTS- & THAT TRACK RECORD,MAY NOT SUSTAIN,& ALSO,MAY NOT APPLY,TO THE 10 NEW MUSKETS !
& SO,HOW DID INDIAN BANKS AND INSURERS, BUY INTO AEL & LEND ON AEL STOCK ? WHO ARE THE FIIs WHO BOUGHT IN,& DID THEY JUST ROUTE SOMEONE’S MONEY ! dindooohindoo
WHICH IS Y AEL IS FALLING, MORE THAN,THE 9 ! SAMIR SARDANA