Hindenburg attack not limited to Adani how crisis will arise for India?
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This crisis has arisen at a time when China’s economy is opening up. Banks are also expected to suffer huge losses due to this crisis. The short-seller Hindenburg report released on January 24 has shaken the entire Adani Group. The Adani Group is part of the Indian Foundation. The group’s investments are in various infrastructure projects. These include airports, seaports, power plants, etc. This group is constantly flapping its wings to spread its wings in new areas. He has the power of expertise and execution which the government machinery probably does not have. The report of a small American company has raised doubts about the giant Adani Group. With his 100-page report, Hindenburg has shaken the confidence of investors. The beating of Adani Group shares is proof of this. This thing is not limited to Adani Group only. The country’s regulatory framework has also come under the scanner. Foreign investors have many questions in their mind. Since the Hindenburg report came, the market value of Adani Group has lost more than $ 100 billion.
Allegations ranging from money laundering to fraud
Hindenburg made many allegations. This ranges from money laundering to fraud. He has termed the rapid growth of Adani Group as the biggest scam in corporate history. Adani Group has rejected these allegations outright. Adani himself tried to allay the fears of investors by appearing on TV. He said that the fundamentals of the company are strong. The balance sheet is also healthy. He came to the fore after he decided to defer his FPO.
Adani Group is the largest private operator running ports and airports. It controls 33 per cent of Indian air cargo traffic. Its shipping capacity is 24 per cent. The group plans to invest $70 billion in renewable energy projects. The goals of the group are related to fulfilling the ambitions of the Modi government. Debt also plays a big role in the expansion plans of the group. It has a debt of about Rs 1.6 trillion. The Adani Group is one of the major investors in the execution of the government’s infrastructure projects plan. Adani crisis may derail this plan.
Is Hindenburg Report True: Is this short seller lying? Adani replied to Hindenburg’s allegations, you also see
Banks are also missing
The Adani crisis has also made the banks lose their whistle. Along with beating the shares of Adani Group, the shares of banks have also rolled. Shares of State Bank of India (SBI) have plunged 11 per cent since the Hindenburg report came out. Between January 27 and January 31, Foreign Institutional Investors (FIIs) pulled out $2 billion from India. Investors’ interest in Indian stocks has clearly decreased. Due to the closeness with Prime Minister Modi, the opposition has also started making hue and cry with full force. This message is going to be negative for investors. This will raise questions on India’s regulatory framework. India’s credibility as a global growth engine is being questioned. Certainly the crisis of Adani Group is not a good sign for the Indian economy.
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