Capitalization of Indian Adani Group collapsed by $42 billion after allegations of fraudulent schemes

In a few days, the shares of the Indian conglomerate Adani Group fell by 10%, thereby reducing the company’s capitalization by $42 billion. 8%.

Adani shares began to decline after Hindenburg Research published own investigation about the conglomerate. According to Hindenburg Research, they have been investigating for two years and have collected evidence that “Adani Group has been involved in blatant stock manipulation and reporting fraud schemes for decades.” The company questioned the “sky-high valuation” of the group’s companies and said the conglomerate was, in fact, “substantially indebted”.

Hindenburg Research specializes in such investigations and the search for financial fraud and other irregularities in the activities of public companies, earning on the shorting of companies’ shares after the publication of investigations. So, in particular, after the investigation against the manufacturer of electric vehicles Nikola Corp The company’s quotes fell by 90%, and its head, Trevor Milton, was convicted of defrauding investors.

Adani group of companies was created businessman Gautam Adani. In the 1980s, he created the trading firm Adani Enterprises, since then the conglomerate has included a variety of companies – from port and energy network operators to agricultural and transport firms. In September last year, Adani ranked second in the Bloomberg Billionaires ranking of the world’s richest people with a net worth of $147 billion.

Yana Rozhdestvenskaya