[jaaz]

Originally Posted by Spaced Out

Adani CFO responds to Hindenburg report with the National Flag behind him!

"Patriotism is the last refuge of the ....."

Your quote says it all.

Any interrogation, if it goes beyond couple of hours means, the authorities are trying to implicate the suspect. Same goes with more than 400 pages of reply. If the answers were straight forward, it would hardly take less than 10 pages.

The report by Hindenburg is not a surprise to majority of Indians, as every one is aware of it.

Now, We should not be surprised, if there is a hostile take over of Hindenburg Research too.

[warp_10]

Originally Posted by SmartCat

Some more funny stuff happening:

However, "nobody knows" () how IHC became a $240 billion marketcap company in UAE in 3 years flat. It is a bit like Adani's clone.
https://www.ft.com/content/3690cc04-...d-26b5c185e99d

Attachment 2412270

It is owned by the Emirates Royal family (Sheikh Tahnoon, brother of UAE president) apparently.
https://www.bloomberg.com/news/artic...share-offering

There was an in-detail investigative article on Sheikh Tahnoon and his family by Bloomberg a few weeks back, which points to how this group invest to save battered economies/companies to leverage political positions. Probably this investment was facilitated in a similar way. Just saying !

https://www.bloomberg.com/features/2...ans/#xj4y7vzkg

[navin]

Originally Posted by SmartCat

UAE based conglomerate invests $400 million in Adani Enterprises FPO

Originally Posted by warp_10

It is owned by the Emirates Royal family (Sheikh Tahnoon, brother of UAE president), apparently.

I got this via Whatsapp (don't know how to send Whatsapp to my laptop)

"Adani Enterprises is currently trying to raise $2.4B in new stock through the sale of 45M new shares. The group is ploughing on with the deal, despite having firm bids for fewer than 1M shares as of the close in Mumbai. Abu Dhabi's IHC (ADX:IHC) indicated it would invest in the capital raise as planned."

Dont know how Adani and IHC are related (outside of IHC being an investor in Adani). But we should watch this.

[neeraj0272]

Any idea about what would be Hindenburg's exit plan?
It would seem that they must have shorted Adani in the third week of January so as to gain the maximum time to work their strategy.

At what time or at what profit(both in % and absolute terms) they would cover their shorts?

Finance to players like Hindenburg must be expensive so they must be looking for a quick exit.
Any team member experienced about this type of aggressive shorting care to explain the whole modus operandi.

Also it would seem on the surface that Hindenburg primary business is aggressive short selling but it is also possible that these type of players may be involved in blackmail also.
I would love to see a thriller movie on this subject along the lines of Wall Street.

[GutsyGibbon]

Originally Posted by neeraj0272

Also it would seem on the surface that Hindenburg primary business is aggressive short selling but it is also possible that these type of players may be involved in blackmail also.

Look at the track record of Hindenburg. https://hindenburgresearch.com/about-us/
They have found financial irregularities with lots of companies, and gotten lots of people to fall. These people would be waiting for any mis-step/illegal activities by Hindenberg to get back at them. When their legal model of finding fraud and benefiting from it is working so well, why would they do illegal stuff like blackmail and jeopardize a good business model.

As many people suggested here, the ways of Adani are well known, understood and digested. If there is nothing new in the Hindenburg report, but click bait titles about publicly available info - does that constitute a crime that can stand in an international court?

[alphamike_1612]

This entire Adani Hindenburg saga is like a Saas-Bahu fight with the retail investors of India being the poor husband.

Mods - Kindly delete the below if found to be a breach of Forum rules.

Originally Posted by GutsyGibbon

As many people suggested here, the ways of Adani are well known, understood and digested. If there is nothing new in the Hindenburg report, but click bait titles about publicly available info - does that constitute a crime that can stand in an international court?

This is downright conspiracy theory and may very well be proven wrong, but can/will the political masters of India lay pressure on the US to act on Hindenburg?
Is the alleged relationship between the 2 parties so important?
I ask this because of 3 reasons:
1. Adani is heavily invested in the infrastructure of India. A life threatening blow such as this one, means all of that infrastructure will go down and from that point of view, it is important to save the company and therefore the country.

2. As already pointed out in this thread, the alleged politician-businessman nexus that is extremely necessary to fight (and win) elections.

3. Hindenburg to date doesn't seem to have acted against any conglomerate such as Adani, who's company is closely linked to essential infrastructure of the entire nation. (Or as few members commented, a company that is too big to fail)

Does India have the power to lay pressure on the US? I do believe so, our position in the world pecking order is considerably higher up than when I started following politics a few years ago and the recent outpouring of support on a certain BBC documentary seems to be proof of that.

[sachinayak]

Originally Posted by alphamike_1612

Adani is heavily invested in the infrastructure of India. A life threatening blow such as this one, means all of that infrastructure will go down and from that point of view, it is important to save the company and therefore the country.

Politics apart - why would Adani be too big to fail? As far as I understand, only a handful of large banks would be classified as too big to fail, as they fund a lot of businesses.

Adani is involved in infra projects, but if the company goes down, my guess would be the projects would be transferred to competing firms e.g. GMR for Airports. Could be a complete misunderstanding on my part, but I would think this would at most increase the project cost, slight shift in timelines or shortfall in estimated revenues for the govt, but not something that should bring the nation down.

Honestly, no company (and certainaly not the Adani group) is a representation of the nation. They are all in the business to make money, not to do national service.

[Spaced Out]

Originally Posted by VaibhavShatna95

Just a fun fact, I was in Ahmedabad this past month and saw Shantigram up close and personal. The thing which struck me by talking to his employees was that all of the decisions are taken by him and there is very little power which is delegated to out of the family top brass.

This reminds me of Yes Bank. Once some decision involving their participation was stuck. It involved a pretty small sum of money. A Senior VP said it was stuck with Rana Kapoor. I was surpised that a decision of such small significance went up to him. I will never forget the executive's response:

Sir, even the colour of the bathroom tiles is decided by Rana Kapoor.


Most Indian companies continue to run in this fashion with very little delegation. We have a long way to go before this culture changes.

In contrast I still remember my experience with Verizon in US. They messed up my broadband connection request and it took two complaints to make it happen. As an apology, the customer service there waived $120 or so : installation charge + modem + first month fees. I was a Verizon customer for life after that.

In India I had to get the CEO of the Indian arm of global printer company involved to replace my dead on arrival printer.

[clevermax]

I played the fool's game with Adani shares and ended up banking some dough. I bought a couple of hundreds of them during covid downfall and sold most of them on the second day of the Hindenburg attack.

[vrprabhu]

Originally Posted by alphamike_1612

......heavily invested in the infrastructure of India. A life threatening blow such as this one, means all of that infrastructure will go down and from that point of view, it is important to save the company and therefore the country.....

Slightly OT, but relevant nonetheless - anyone remembers the fiasco of what was a systemically important company (in fact, it was a conglomerate) called ILFS?

Don't even recollect a hiccup from the lenders when billions went down the drain; and, I for one, don't have a clue about how much money has been recovered and repaid. ILFS's downfall didn't bring infra growth to a standstill. BTW, some of the assets they created are up and running as of date - enabling some to make a killing by picking them up dirt cheap.

If the so called 'assets' are created and indeed have value, it won't matter if the company that created them goes down - there will always be takers for good value assets...

[dragonfire]

The 413 page response is not meant for Hindenburg, but for internal consumption. That is the reason it brings up nationalism into it and tries to build the narrative that the attack on Adani is an attack on India. As usual the nationalists at home will lap it up, and that is evident from the upward movement of Adani stock price yesterday.

If you looks at some of the twitter threads you will see that there is considerable support for Adani from the Indian public. For them it is an attack on the current rulers which means an attack on India. Look at some of the justifications that they put forward:

"There is nothing new in the report - nothing we didn't already know"
"Hindenburg is no saint. They plan to make money off it"
"Ambani has done the same thing, albeit slowly"

It is appalling how some people try to whitewash it just because these businesses are hand in glove with their political masters.

It needs to be seen how much the govt can do to repair the damage that this report has done to Adani.

[DicKy]

Not going into the share market valuations or the political angle.

But for selfish reasons, I want the Adani group to come out of this stronger, though scathed.

For the simple reason that Adani is the concessionaire for the under construction Vizhinjam port in Thiruvananthapuram. The IT sector growth not withstanding, it is the prospect of the port that is leading to many infra developments and entrepreneurship in this once sleepy government officers' city.

So even if many wants crony capitalist Adani to belly up thanks to some people sitting in New York City, I would rather much want the port to be up and running, before he belly ups at all. Also given the fact that once these infrastructure facilities are up and running, any one can operate them, bloated share values or not. Unlike many of the e-commerce, IT, BEVs start-ups that have ballooned valuations made on air that could vanish overnight.

[kiku007]

Originally Posted by alphamike_1612

1. Adani is heavily invested in the infrastructure of India. A life threatening blow such as this one, means all of that infrastructure will go down and from that point of view, it is important to save the company and therefore the country.

Nationalize this navarathna/national jewel/critical piece of national importance and secure India's future. I mean, LIC and SBI are already invested anyway.

P.S: I can understand that India's infrastructure growth is slow but they've sold the story that infrastructure didn't exist before 2014/Adani. Good PR work.

[Turbo_Charger]

Originally Posted by alphamike_1612

1. Adani is heavily invested in the infrastructure of India. A life threatening blow such as this one, means all of that infrastructure will go down and from that point of view, it is important to save the company and therefore the country.

There was a group which was as invested as Adani in India's infrastructure, Infact it was present in Energy, Power Generation, Electricity Distribution, Infrastructure, Communications, Defence, Finance, Insurance, Entertainment & Health Sectors and its owner was ranked 6th in the richest people list of the world in 2008. But that Group still collapsed due to unsustainable debt and the owner couldn't pay Ericsson and had to be bailed out by his elder brother from going to prison. The country still survived shareholder wealth being wiped out by 90% and others took over in the sectors where his group was present.

The gentleman is Anil Ambani. If Adani (hypothetically) fails the country & its infrastructure will still survive like they have done many times in the past.

[JediKnight]

Originally Posted by DicKy

But for selfish reasons, I want the Adani group to come out of this stronger, though scathed.

Same here. I want Adani to re-emerge stronger. For India's sake. I don't care about Gautam Adani. But I care about India. India needs several companies of Adani's scale. Just a Tata and Ambani are not good enough.

I am sure Mr Adani has done some hanky-panky. But the ground realities of doing business in India are far different from what arm chair experts and self righteous keyboard warriors(like me) understand. I hope his overall intentions are good and he wants to create something of value for the country.