A month after the Hindenburg research report, the Adani group was accused of 'stock manipulation and accounting fraud', Gautam Adani lost the title of India's richest man and his company's market capitalization fell below $100 billion . Know key updates on the Adani-Hindenburg dispute
There was an uproar on January 24 when the Hindenburg Report, a US-based short-seller on India's richest man, Gautam Adani's company, was questioned about "stock manipulation and accounting fraud over the decades". Since then, a lot has happened in the Indian stock market which has changed the situation for Gautam Adani and his business. From losing the title of India's richest man to seeing an outflow of investment, a month has changed a lot for business tycoon Gautam Adani.
In his report, Hindenburg claimed that the Adani group was involved in a "brazen stock manipulation and accounting fraud scheme". Know about all the major events that unfolded in a month in the Adani-Hindenburg dispute.
Adani-Hindenburg row timeline
On 24 January, Hindenburg released a research report on the Adani Group, which it claimed had been engaged in "stock manipulation and accounting fraud" for more than ten years.
The claims made by the US-based short seller had a ripple effect across the Indian stock market, dragging India's largest insurance company, LIC, into the matter. According to reports, LIC had invested more than ₹30 crore in ten Adani Group companies.
Heavy selling in Adani firms' shares till January 26 resulted in a loss of over $100 billion in market value on Thursday, Bloomberg News reports. Later index provider MSCI sought answers on Adani Group and its associated securities following the Hindenburg report.
On January 27, the Adani Group's assets continued to decline. Its follow on public offer (FPO) was subscribed only 1 per cent that day.
In response to Hindenburg's claims, on January 29, Adani Groups released a 413-page long statement. In response, the group called it an attachment to India's growth story and its ambition.
On January 30, Hindenburg described Adani's statement as a failed attempt to resolve all the questions raised in his report. It rejected Adani Group's response and stood by its claims.
-The same day, Abu Dhabi Group International Holding Company (IHC) announced an investment of $381.17 million in a follow-on public offering of Adani Enterprises, Reuters reported on January 31.
On January 31, Adani Enterprises FPO was fully subscribed.
On February 1, as the report managed to draw global attention to the Adani enterprise, Credit Suisse private bank closed its margin lending on Adani bonds. The private arm of the Swiss lender announced to stop accepting Adani Group bonds as collateral for margin loans to its private banking customers. Similar to Credit Suisse's private bank, Citigroup Inc. The money arm of the RBI stopped taking securities of Gautam Adani's group of firms as collateral for margin loans.
On February 2, Gautam Adani announced the cancellation of the follow-on public offer (FPO), which was fully subscribed. He said in a video message that the group has decided to stop selling shares to protect its investors from market volatility.
Bonds of Gautam Adani's flagship firm fell to extremely low levels in US trade.
-The Reserve Bank of India (RBI) sought details from banks on their exposure to the Adani group, Reuters reported. The information sought by RBI includes details of the collateral being used to back the loan and the indirect exposure to the banks.
The echo of the Adani-Hindenburg dispute was also heard in the Parliament. The opposition created ruckus in the lower and upper houses of Parliament during its proceedings. The opposition demanded formation of a Joint Parliamentary Committee (JPC) to probe the matter.
On February 9, MSCI said it is reviewing the free-float status of Adani Group's securities based on certain concerns raised by various market participants. MSCI calculates the free float-adjusted market capitalization for each security.
On February 10, the Supreme Court agreed to hear a plea seeking a direction to the Center to constitute a committee under the supervision of a retired judge of the apex court to examine and investigate the Hindenburg Research Report. The petition was listed before a bench headed by CJ DY Chandrachud.
On February 13, Adani Group halved its revenue growth target for the next financial year, reported Bloomberg. The group reset its growth target to between 15–20%, down from the 40% growth it had originally targeted.
On February 14, the Center replied to the apex court and said that it had no objection to the Supreme Court setting up a committee on the Adani-Hindenburg matter.
On 20 February, Adani lost its market capitalization and it went below $100 billion. It fell by more than $135 billion since the release of the Hindenburg Research report in January. Adani Group
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