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The Hindenburg Report highlighting Adani Group controversies has brought about a huge blow to the success story of the Adani Group. It caused the Adani Group businesses to be seriously affected.
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On the Hindenburg anniversary, Gautam Adani says that his business Group has only become stronger. Gautam Adani has always termed the Hindenburg Report’s charge of stock manipulation and fraud as lies and a compilation of old and dead allegations. Within a year after the report by the US shorter seller hampered the image of the ports-to-power conglomerate with allegations of Adani Group controversies, the business group was back on its toes. It was able to recover from the losses that it suffered during the Adani Hindenburg crisis.
The Impact of the Hindenburg Report on the Business of the Adani Group Gautam Adani said that the Hindenburg allegations have only made the Adani Group stronger as it continues to improve its asset base, launch new products, and make progress on its journey towards acquiring growth. In one of the leading newspapers, Gautam Adani said that the Adani Group has already raised INR 40,000 crores of equity by selling stakes in some of the major firms. The company has also managed to repay INR 17,500 crore of margin-linked financing and reduce its existing debts.
THE INITIAL DAYS OF CRISIS The Hindenburg Report highlighting Adani Group controversies has brought about a huge blow to the success story of the Adani Group. It caused the Adani Group businesses to be seriously affected. The stock values of the companies operating under the global conglomerate began to fall right after the Hindenburg Report was released. A lot of investors stopped making investments altogether in the Adani Group. Gautam Adani, who was initially ranked as the second richest person in the world at the start of 2020, slipped out of the top 20. Thousands of small business investors completely lost their savings. Had the Hindenburg report succeeded in making a point, the domino effect could have also crippled the critical infrastructure assets ranging from ports to airports and logistics. It could have been a catastrophic situation for the entire country.