Till January 23, Gautam Adani was in the top-3 in the list of rich people. However, on January 24, Hindenburg Research prepared a 106-page report against the Adani Group. All Adani shares slipped into the red zone on January 25 after the January report, the EPO announced by Gautam Adani was closed on January 31, and on February 1, Adani Enterprises announced the cancellation of the FPO. On the other hand, the RBI has also sought an answer from the banks regarding the Adani Group’s debt, besides this, the NSE has put three shares of the Adani Group under surveillance.
It is important that in the last 9 days the Weaith of Adani Group has decreased by 8 lakh 76 thousand crore rupees. The Hindenburg report on the Adani Group has created a stir in the Parliament to the stock market, the opposition is demanding an inquiry into the allegations leveled at the Adani Group. There was uproar in Parliament on Friday too, with the Lok Sabha adjourned till 2 pm and the Rajya Sabha till 2.30 pm. The opposition is demanding the formation of a Joint Parliamentary Committee (JPC) or a committee headed by a protected court.
As of January 23, Adani was in Vishnu’s top-3 richest list, although on February 2, he moved to the 16th position and on February 3, he reached the 21st position. Shares of Adani Enterprises fell 35% on Friday, close to Rs 1,000 a share. The share price was close to Rs 3500 before the report came out, thus the company’s shares have fallen 70% in 9 days, Exchange Dow Jones has also dropped Adani Enterprises from the sustainability index.
The Congress demands that the Hindberg report should be investigated by the JCP, while the leaders of CPI, CPM, SP, AAP, TMC demand that the entire matter be investigated under the supervision of the Supreme Court.
Congress-President Mallikarjun Kharge called a meeting of opposition parties on the matter in the Parliament premises, in which 13 parties including Congress, TMC, Aam Aadmi Party, SP, DMK, Janata Dal and Left participated. Congress General Secretary KC Venugopal said that party workers will hold protests on February 6 in front of LIC and SBI offices located in districts across the country. The opposition leaders said that this is the biggest scandal of this immortal period of the stock market.
The NSE has added three Adani Group stocks to the Additional Surveillance Majors list for the short term, including Adani Port, Adani Enterprises and Ambuja Cement. ASM is a form of surveillance through which market regulator SEBI and market exchanges BSE, NSE keep an eye on it. The objective of which is to protect the interests of investors. As a stock fluctuates, it is placed in the NSE.
It is mentioned that ‘Adani Enterprises has decided in the board meeting held on February 1 that we will not take the FPO forward. In view of the current situation and the recent market volatility of the Company, it has been decided not to proceed with the FPO in the interest of the customers and to discontinue the transaction altogether. The board said, ‘We thank investors for participating in the FPO, noting that subscription to the FPO was closed on January 31.
You may be wondering what is FPO then let us tell you that Follow on Public Offer is known as FPO in the market, it is actually a way of raising money for a company. A company which is already listed in the stock market, offers new shares to investors. These shares are different from the shares available in the market.
Now let us also explain to you what is the difference between IPO and FPO,,, understand that companies use IPO or FPO for their expansion. A company first floats its shares in the market through an Initial Public Offer i.e. IPO. When additional shares are brought to the market in FPO.
It is important that the report of American research firm Hindenburg came. In which the Adani Group has been accused of being involved in stock manipulation, money laundering and accounting fraud, in view of which, the RBI has sought information from all banks regarding loans given to Adani Enterprises Limited.
Although the Gautam Adani Group termed the Hindenburg Report as a conspiracy to attack India, the group released a 413-page reply. It has been stated that all the allegations leveled against the Adani Group are false. The group also said that the real purpose of the report is to create a new market for the economic benefit of American companies.
Now the Bangladesh government has demanded a review of the deal in the energy sector with the Adani Group. According to the government of Bangladesh, the cost of electricity is high and should be reduced, Bangladesh signed a power purchase agreement with Adani Power Limited in 2017.
The Bangladesh Power Development Board on Thursday wrote a letter to Adani Power, demanding a change in the power purchase price. According to BPDC, they are getting expensive electricity. BPDC signed a deal with Adani Power in November 2017 to supply 1496 MW of electricity for 25 years.
You may be aware that the news research team of Firstraynews has also prepared a report on how Hindenburg Company works and how it prepares a report. Hindenburg Company monitors all the activities in the share market. The Hindenburg Company takes care that it is not abusing account mismanagement for personal gain,,,, in addition, no company makes one-sided deals to harm other companies, etc.
Similarly, the Hindenburg Company has released a report keeping in mind every move of the Adani company in the last two years, the report alleges that,,, the Adani Group is doing 85 percent more business than other companies in the sector in which it operates, Adani Group in the market. By manipulating the price of his shares, Gautam Adani has also taken money from companies in Mauritius and other countries, Adani Group has a total debt of 2.2 trillion as on 31 March 2022. Along with this, there are 7 companies of this group whose debt is more than equity.
Hindenburg Company was established in America in the year 2017 by Nathan Anderson, the company formed five years ago was studying Gautam Adani and his family members and all the reports for the last two years and after thorough study has prepared a 106 page report, in which Adani Group was asked a total of 88 questions. have been asked
It is not the first time that the Hindenburg Company has produced a report and investors have believed that report, Hindenburg in 2017 has listed US-based RD Legal, Poshing Gold, Opco Health, Royal Blockchain, Bloom Energy, HF Food, Nicola, Twitter and Canada’s Afriano. But the report was prepared and the company that was earning billions was put into trouble.
In 2020, the share price of Nikola, an American company that manufactures electric trucks, was increasing rapidly. Then in September, Hindenburg released a report on the Nicola Company, after which the company’s shares fell 80%, in his report, Hindenburg claimed that Nicola had misled investors about his company and vehicles.
After receiving this news, the US Securities and Exchange Commission started a criminal case of fraud against the owner of Nicola, Nikola owner Trevor Milton had to pay a fine of more than 1000 crore rupees after being found guilty. In June 2020, Nicola Company was valued at Rs 2.77 lakh crore, which after a few days fell to Rs 11 thousand crore.
Answering the questions raised by Hindenburg in the report, Adani Group said that the documents in question have already been disclosed by Adani Group at different times, Adani Group further says that 8 out of 9 listed companies should be audited by 6 major auditors. ,, and the debt is actually less than 4 percent of the promoter holding, the company’s balance sheet has not been tampered with.
According to a report, Indian banks owe about 80,000 crores to Adani Group, which is 38 percent of Adani Group’s total debt, SBI has given a loan of 21,000 crores, while Punjab National Bank has given a loan of 7,000 crores, LIC has 35,000 crores in Adani Group. There is an investment of crores.
Now we will also tell you that, should LIC investors worry or not?… The true fact is that LIC has more than 28 crore policyholders. LIC invests the money received from them in many assets including stocks, government bonds. LIC gives the proceeds to its policyholders. A large proportion of LIC’s policyholders are middle class and salaried employees. It is therefore hoped that LIC will tailor its investment portfolio in such a way that there is no need to take too much risk and the policyholders get their money back with a profit.
After the Hindenburg Report political rhetoric and social media raising questions about LIC’s investment in the Adani group, LIC presented its side. LIC issued a statement saying that it has over the past several years paid Adani group companies Rs. 30,142 crore shares have been purchased.
On January 27, its market price was Rs. 56,142 crores. By December 31, 2022, he has invested in Adani group companies, including shares and debt, for a total of Rs. 35,917 crore has been invested. 36,474 crore of LIC in Adani group now. 78 crores invested, LIC’s total assets under management are Rs. 41.66 lakh crore and thus the total book value of its investment in the Adani group is only 0.975 per cent.
It is important that NSE has given information to put 3 shares of Adani Group in the framework,,, Along with this, before 7th February, Dow Jones will remove Sustain from the Bability Index, then Dow Jones will also remove Adani Enterprises from their index. On the other hand, Adani Group is receiving one blow after another, although on the other hand, global rating agency Fitch has given relief to Adani Group, FITCH says that there is no impact on the cash flow of their group, although FITCH is monitoring the entire dispute.
