Adani Enterprises, the flagship of Indian billionaire Gautan Adani’s business empire, raised $2.5 billion from investors on Tuesday in a thorny financing process that has been stymied by recent fraud allegations. Suspected of.
The closing of the share offering was supposed to mark another milestone in the Adani group’s ongoing upward climb. Instead, a week ago New York investment firm Hindenburg Research, betting that Adani Group’s shares would plummet, dropped the bomb on a report on the group, saying its financials were “historical”. Biggest deception ever.”
The Adani Group dismissed Hindenburg’s report, partly characterizing it as an attack on India itself.
Shares of most listed companies controlled by Mr. Zhang have risen every market session since the report was released. Adani has sunk, hitting the 20% limit at times. Tens of billions of dollars in value have been wiped out, including during the company’s tender for its product, the largest of its kind in India.
Hindenburg’s report takes direct aim at the valuations of Adani Group companies, which have reached jaw-dropping heights. Adani Enterprises shares rose 3,000% in five years at the start of the year.
Hindenburg was a so-called short seller who made money on investments that paid off when the company’s stock price fell. It argued that the share price of the Adani group of companies was artificially inflated through manipulation involving offshore shell companies.
Over the weekend, the Adani Group published a lengthy rebuttal dismissing what it called Hindenburg’s “baseless and discredited allegations to advance ulterior motives”. In its more than 400-page response, the company said the Hindenburg report “is not just an unwarranted attack on any particular company, but on India, the independence, integrity and quality of Indian institutions, and India’s growth story and Ambitious deliberate attack on “India. “