Shares of the Adani Group, the Indian energy and infrastructure conglomerate headed by one of the world’s richest men, Gautam Adani, plummeted Friday after a U.S. research firm published extensive allegations of fraud.
NEW DELHI — Shares of the Adani Group, the Indian energy and infrastructure conglomerate headed by one of the world’s richest men, Gautam Adani, plummeted Friday after a U.S. research firm published extensive allegations of fraud that rocked business circles in the world’s fifth largest economy.
The firm said it believed Adani companies were heavily indebted and trading at more than 80 percent higher valuations than their fair value and announced it had taken a short position, meaning it was betting that Adani shares would fall.The Adani Group has denied the allegations and said it was considering legal action against Hindenburg.
Hindenburg had timed its report to sabotage Adani’s secondary share offering this week, Singh, the CFO, said in a video released by the company, which showed him speaking into a camera whileThe group’s apparent proximity to the Indian government has long been seen in Indian business circles as one of its advantages over competitors — but also a point of criticism.
While detractors argue Adani’s success in becoming a leading supplier of coal-fired power, shipping, food and renewable energy was largely owed to his proximity to Prime Minister Narendra Modi, his admirers argue that he has built crucial infrastructure that supports India’s growth, delivered employment for millions of people and carried out investments that have aligned neatly with the government’s policy goals.
“A system is broken when corporate behemoths like Adani Group seem able run an intricate fraud in broad daylight and when ordinary citizens are terrified to speak out against those who use their power and wealth to suppress criticism,” it said. “We hope this report marks the beginning of a change.”
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