More Than $100 Billion Lost In 10 Days: All That Has Happened In Hindenburg Vs. Adani Saga So Far
It¡¯s been over 10 days since the Hindenburg research report came out and went on to rattle the Adani group. In the past 10 days, Adani Group companies have lost more than $100 billion in market cap, and its chairman, Gautam Adani, has lost the title of being India and Asia's richest person.
It¡¯s been over 10 days since the Hindenburg research report came out and went on to rattle the Adani group.
Hindenburg vs. Adani Group
In the past 10 days, Adani Group companies have lost more than $100 billion in market cap, and its chairman, Gautam Adani, has lost the title of being India and Asia's richest person to Reliance's Mukesh Ambani.
As the Hindenburg vs. Adani saga continues, let us look back at what all has happened to date, right from the day the Hindenburg report came out last week on the 24th of January.
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Also Read: Meet Nathan Anderson, The Man Behind Hindenburg Report
24th January 2023
Hindenburg Research comes out with its report alleging the Adani Group of accounting fraud, stock manipulation, and money laundering. They titled the report as 'How The World¡¯s 3rd Richest Man Is Pulling The Largest Con In Corporate History' .
NEW FROM US:
¡ª Hindenburg Research (@HindenburgRes) January 25, 2023
Adani Group ¨C How The World¡¯s 3rd Richest Man Is Pulling The Largest Con In Corporate Historyhttps://t.co/JkZFt60V7f
(1/x)
Hindenburg mentioned that based on its research, it has taken a short position in Adani Group Companies through U.S.-traded bonds and non-Indian-traded derivative instruments.
Adani's stock begins to fall as the report is released, with Adani Green Energy falling 0.7%, Adani Ports falling 1%, and Adani Transmission falling 0.8% vs. their closing prices a day before.
January 25th, 2023
A day after Hindenburg's report came out, Adani Group's CFO Jugeshinder Singh came out with a media statement alleging the research report as "baseless" and saying, "We are shocked that Hindenburg Research has published a report on 24 January 2023 without making any attempt to contact us or verify the factual matrix."
Media statement on a report published by Hindenburg Research. pic.twitter.com/ZdIcZhpAQT
¡ª Adani Group (@AdaniOnline) January 25, 2023
As the report continues to hurt Adani Group and Hindenburg awaits answers to its 88 questions, Adani Group stocks keep bleeding, with Adani Enterprises down 1.5% on that day, Adani Green Energy down 3%, Adani Ports down 6%, Adani Power down over 4%, and Adani Transmission down 8% compared to their closing prices a day before. In just one day, Adani Group companies lost a total of Rs 97,000 crore.
January 26th, 2023
As Adani's stocks continued to bleed, Adani Group came out with another media statement. This time, its legal head Jatin Jalundhwala mentioned in the statement that "the maliciously mischievous, unresearched report published by Hindenburg Research has adversely affected the Adani Group, our shareholders and investors. The volatility in Indian stock markets created by the report is of great concern and has led to unwanted anguish for Indian citizens."
Media statement ¨C II on a report published by Hindenburg Research pic.twitter.com/Yd2ufHUNRX
¡ª Adani Group (@AdaniOnline) January 26, 2023
Later this day, Hindenburg Research comes out with a response to the Adani Group's statements. Hindenburg says "If Adani is serious, it should also file suit in the US where we operate. We have a long list of documents we would demand in a legal discovery process."
Our response to Adani: pic.twitter.com/6NcFKR8gEL
¡ª Hindenburg Research (@HindenburgRes) January 26, 2023
January 27th, 2023
Amid the Hindenburg report rattling the Adani group, its flagship company, Adani Enterprises, proceeds with opening subscriptions for its follow-on public offering (FPO) of $2.5 billion, despite a continued stock sell-off seen in group companies¡¯ stocks.
The FPO gets launched amid a rapid sell-off in Adani portfolio companies' shares. The offer received a muted response and was subscribed to only 0.01 times on Day 1.
Meanwhile, billionaire investor William Ackman says he finds the Hindenburg report "highly credible and extremely well researched."
Adani stocks continue to bleed even more heavily in double digits, with Adani Enterprises down 18% on that day, Adani Green Energy down 19%, Adani Ports down 16%, and Adani Transmission down 19% vs. their closing prices a day before.
adani
January 28, 2023
Index provider MSCI says it is seeking feedback on Adani Group and associated securities. MSCI is an American finance company that provides global equity, fixed income, real estate indexes, multi-asset portfolio analysis tools, and so on.Of the seven listed stocks of the Adani Group, all except Adani Wilmar are part of the MSCI global indices.
January 29, 2023
Adani Group comes out with a 413-page response, warning of legal action against Hindenburg and claiming that the accusations raised against the Indian firm were a "calculated attack on India" and its institutions.
January 30th, 2023
After the Adani Group's 413-page response amid the market bloodbath, Hindenburg responded, saying "Fraud Cannot Be Obfuscated By Nationalism Or A Bloated Response That Ignores Every Key Allegation We Raised."
Our Reply To Adani:
¡ª Hindenburg Research (@HindenburgRes) January 30, 2023
Fraud Cannot Be Obfuscated By Nationalism Or A Bloated Response That Ignores Every Key Allegation We Raisedhttps://t.co/ohNAX90BDf
Some Adani Group stocks continued to bleed while others managed to marginally go up following the statements by Adani Group and Hindenburg over the weekend.
Meanwhile, in a boost to the Adani Group's FPO on its second day, Abu Dhabi's International Holding Company (IHC) invested $400 million in Adani Enterprises. Also, one of Adani Group's biggest shareholders, Life Insurance Corporation (LIC), said it is reviewing the group's response to concerns raised by Hindenburg.
January 31, 2023
Despite a slow start due to the loss of group shares, the FPO was fully subscribed on its third day, thanks to a push from non-institutional investors (NIIS), who subscribed to the offer 3.26 times their quota. The 30% anchor portion attracted investors, including Maybank Securities and Abu Dhabi Investment Authority, as well as India's HDFC Life Insurance and Life Insurance Corp.
On the other hand, some Adani Group stocks, including Adani Enterprise, did manage to climb up marginally.
February 1, 2023
Australia's corporate regulator says it will review the Hindenburg report on Adani Group. Meanwhile, total losses in the stocks of seven listed Adani Group companies since the Hindenburg report swelled to $86 billion.
In a major turn of events, despite its FPO getting fully subscribed, Adani Enterprises calls off FPO citing an "unprecedented situation and the current market volatility". It says it is working with its FPO banks to refund the proceeds. Gautam Adani does not respond to Hindenburg's allegations in his video address announcing the FPO.
Amidst this, Adani Group stocks again fell heavily, with Adani Enterprises down 28% on that day, Adani Green Energy falling 5% more, Adani Ports falling 19%, and Adani Transmission falling 2% vs. their closing prices a day before.
Gautam Adani also loses the title of richest Indian and Asian to Mukesh Ambani of Reliance Industries.
February 2, 2023
The losses in market cap of Adani Group companies go past the mammoth $100 billion mark as shares of the conglomerate continue to bleed. In another setback for Adani Group, Switzerland's second-biggest bank, Credit Suisse, and Citigroup¡¯s wealth arm stopped loans to Adani Group.
Forbes comes out with a report claiming "There¡¯s Evidence That The Adani Group Likely Bought Into Its Own $2.5 Billion Share Sale".
3rd of February, 2023
As things continue to go from bad to worse for Adani Group, the company today received another jolt from the US markets.
The group's flagship company, Adani Enterprises, has been removed from the Dow Jones Sustainability Indices effective February 7. The Dow Jones Sustainability Indices are a family of indices that evaluate the sustainability performance of thousands of publicly traded companies, and they are managed by S&P Dow Jones Indices and RobecoSAM (sustainable asset management) of the S&P Dow Jones Indices.
And that's not all; even India's National Stock Exchange added Adani Ports and the Special Economic Zone to its F&O ban list for February 3. Also, the National Stock Exchange (NSE) has put Adani Ports, Adani Enterprises, and Ambuja Cements under the Additional Surveillance Measure (ASM) framework effective February 3, 2023, to curb short-selling.
Meanwhile, as per Bloomberg report, billionaire Gautam Adani is in talks with creditors to prepay some loans backed by pledged shares as he seeks to restore confidence in his conglomerate¡¯s financial health.
Adani Group Stocks Continue To Bleed
Adani group shares have continued to bleed continuously, and are down heavily as of today morning as well.
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Adani Enterprises is down over 60% since the Hindenburg report came out on January 24, whereas Adani Green Energy is down 50%, Adani Ports is down 42%, Adani Power is down 30%, Adani Total Gas is down 58%, Adani Wilmar is down 30%, and Adani Transmission is down 48% since the Hindenburg report came out.
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