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Top 10 secrets Hindenburg report on Adani 


India’s richest person and business tycoon Gautam Adani is in great trouble. As Adani made over $100 billion in wealth in the last 3 years had struck down significantly. Top 10 secrets of Hindenburg report on Adani made his empire shake its foundation.

As soon as Hindenburg Report, came to light, Adani’s stocks came down drastically. So, Adani lost 4.17 lakh crores just in 2 days.

Therefore, this report made havoc in Adani’s Empire. So, here are the Top 10 secrets of Hindenburg report on Adani. 

About Hindenburg 

Before taking the topic on ” Adani and Hindenburg Report” here is a quick overview of the Hindenburg firm.

This company is a legal eye in the business world. So, this is an intense research firm where it investigates the illegal doings of the company.

Hindenburg is named after the Hydrogen gas balloon which got destroyed in 1937 in the USA. As a result, 35 innocent people died in the horrific incident.

Later, it came to light that it was a man-made mistake. Where the balloon was at over capacity and it was a fault.

In 2011 Nate Anderson started an investigation and Research firm, Hindenburg. So, this research company’s motive is to expose all the illegal or laundering businesses to the world.

Adani VS Hindenburg

Hindenburg became sensational news across India. As this report damaged the entire fame of Adani in a single night.

On 24th January 2023 Hindenburge published a report of 106 points on Adani. As a result, Adani’s net worth dropped significantly and losses climb up to 4.17 lakhs crores in the next two days.

So, the report claims that all the stocks price of Adani is fake. All the stocks price were just a game of manipulation.

Adani companies’ stocks strategy

Stocks Strategy of Adani

Hindenburg Report on Adani claims that all the stocks of his company are fake. Even the majority of the stocks are controlled by their companies.

Any listed company in India is liable to sell its 25% shares to the public and the remaining 75% to its promoters. So, the ratio of public to promoter shares is known as Float.

The float value should be a minimum of 10%. Here, the share price will fluctuate according to the public transactions (buying or selling the stocks). 

But in Adani’s case, the majority of the stocks are with the promoters. Here promoters are the top officials of the company like directors, senior officials, CEO, CTO, and other institutions.

Here is quick logic, if all the promoters are not going to sell their stocks. Then there will be no supply of Adani’s shares in the stock market. As a result, the demand will increase and prices of the stocks shoots up.

This is an unfair game that Adani’s company is following in the stock market. Ultimately, Adani net worth has grown multifold in this manner.

So, any listed company should have a Float of a minimum of 10%. Then the real value of stocks will be seen in the stock market. But in the case of Adani, the float value is less than 5%.

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Debt and Adani Company

Many people are aware of the rapid growth of Adani in recent times. But one of the main factors for his growth is debt. 

Adani companies are there in every sector like

In Renewables- Adani Green Energy

Fossil fuels- Adani Total Gas

Electricity- Adani Power

Import and Exports- Adani ports

In this way, there is a rapid expansion of the business. So, the important factor for his growth is debt. According to the estimates, Adani’s debt ranges from $1.6 trillion to $1.9 trillion.

Any company debt ratio value should be 1. This indicates that the company has the capability of repaying the loan. Also shows the company has more assets than a liability.

But many companies of Gautam Adani have the ration

Current Assets / Current Liability is less than 1.

Here is a table of the Gautam Adani companies debt list

Companies NameRatio
Adani Green Energy 0.5
Adani Power0.9
Adani Total Ga0.2
Adani Transmission0.8
Adani Enterprises0.7
Details of Adanis Companies’ debt ratio

Involment of Ketan Parekh

Ketan Parekh is a scammer in the history of the stock market. Because he practices to hyperinflate or overvaluing the stock’s price. 

He was a stockbroker in Mumbai who use to Pump up the stock’s price. But in 2008 CBI arrested and finally banned him from from 2008 to 2017 from the stock market.

But now, the Hindenburg report on Adani claims that there is a strong connection between Ketan Parekh and Adani. Earlier Ketan pumps the stock price of Adni shares from Rs. 495 to Rs. 1300 in 1999.

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Auditing Scam in Adani company

Any big firm or company will have its auditing group. So, any company will have experienced Auditors and a strong team to audit their financials.

But in the case of Adani companies, there are inexperienced folks with a small team.

According to the report, the auditor of Adani Enterprises and Total gag have small auditing firms. Moreover, all the CA’s are inexperienced.

Here is the list of CA’s of the Adani Group

  1. Pravin Dhandharia
  2. Harshil Shah
  3. Shubham Rohatgi
  4. Ankit Ajmera

Expect Rravin, all their character accountants are just 28 in age. So, these folks are responsible for auditing a company worth $100 billion.

Adani and his family

Adani Scam 2023

Out of the 7 listed companies of Adani, 4 Adanis family members are leading the firms. 

Rajesh Adani is the MD of Adani Enterprises. But the history of Rajesh Adani is shady and consists of illegal activities. Even he got arrested twice and also has fraud cases. 

Even Gautam Adani Brother in law, Samir Vora has criminal records in the diamond trading scam. Even he is leading one of the major companies of Adani in Australia.

Vinod Adani who is the elder brother of Gautam Adani has his name on Panama and Pandora papers. He is responsible for leading all the offshore shell companies.

Ultimately, all the members have involvement in criminal cases. So, the Hindenburg report exposes fraud in Adani companies.

Promoters Stocks and debt exchange

The report also shows that many of the promoters in Adani holdings are taking debt.

Here the promoters are taking massive debts in exchange for the share. As a result, the debts of the Adani companies keep on compounding. But this is not a good sign for any famous company.

Here is a list of Promoters pledging their stocks for debts

Company NameDebt Percentage
Adani Green Energy4.36%
Adani Power25.06%
Adani Ports17.31%
Adani Transmission6.62%
Adani Enterprises2.61%

Mauritius, Cyprus, and other shell companies

The report shows that Adani holds many fake companies in his portfolio. But these fake companies have millions worth of export and import activities.

So, the companies that didn’t even exist are coming under the businesses worth millions. Even Vinod Adani has over 38 fake or shell companies.

In this way, Adani is illegally making black money.

Hindenburg report on Adani Stocks Manipulation

Here is a description of the Adani stock manipulation on the stock market. So, this is the reason for the overvalue of Adani Stocks.

Initially, Vinod Adani who is the director of foreign companies makes investments in Adani Private, offshore, and Trust companies.

Then the Adani companies in the stock market will create companies in the offshore Islands. Then this company offshore will purchase the majority of the shares of the listed companies of Adani.

So, these offshore companies will never sell their stocks. Therefore there is a shortage in the supply of Adani’s stocks. Naturally, the demand for stocks hikes. Finally, the stock price will increase in the stock markets.

In this way, there is an unrealistic high value for the Adani stocks in the market. Ultimately this will increase the wealth of Gautam Adani.

In this way, Adani made $100 billion in net worth in the span of 3 years from 2019 to 2022.

So, the Hindenburg report claims that Gautam Adani made 85% of the wealth in the last 3 years.

Will Adani Come backmin 2023? 

As on January 24 Hindenburg report just destroyed Adani’s stock manipulation games. Then as it hit Indian news, all of the Adani stocks went significantly down.

There was a great dip in his wealth as well. As Adani was the richest person in Asia with $120 billion but now holds the 26th position on the Forbes list with $41 billion.

Then people came to know about Adanis debt pumped growth. As he got debts to purchase new companies and expand his empire.

So, Adani and Hindenburg’s report got clashed resulting in a massive loss of wealth.

Repayment of Loan

It is high time that Adani realized to repay his debt. Now Adani is repaying loans to win back the trust of the public.

But according to the 2022 report, Adani debt stands at a whopping $2.2 billion or 2 lakh 26 thousand crores.

On contrary, Adani has an asset worth only 31,646 crores. So, this makes him and his empire doubtful to repay the debt.

Now, Adani repaid the loan of 1500 crores to the SBI mutual funds and also assured to pay 5000 crores in FY23.

No more Expansion of the Adani empire

As many witnessed, Adani’s wealth has grown multifold in just the last three years. In 2019, Adani’s net worth stands at $20 billion. But in just three years, in 2022 Adani’s net worth stands out at $120 billion.

All of the Adani net-worth secrets are the expansion of his empire. As many Adani followers will be aware of the rapid expansion in Adani’s portfolios.

Gautam Adani debuted in every growing industry like Green Energy, Airports, construction, and many more.

In his recent buybacks, Adani purchased Amabuja cement, ACC, and NDTV to his purse network.

He kept on expanding his industries in various fields. So, here is the Adanis Companies list for 2023

Adani Enterprises

  1. Mumbai International Airport
  2. Navi Mumbai Airport
  3. Air Works

Adani Ports

  1. Abbot Point, Australia
  2. Ocean Sparkle
  3. Gangavaram Port
  4. Dhamra Port
  5. Dighi Port
  6. Krishnapatnam Port

Adani Roads and Transport

  1. Toll Roads in Andhra Pradesh and Gujrat

Adani Transmission

  1. Ailpurduar
  2. Warora Kurnool
  3. MMRDA Distribution
  4. Ambuja Cements
  5. ACC- Holcim

Adani Wilmar

  1. Kohinoor Brands

Adani Green

  1. Wind Energy Projects
  2. SB Energy Holdings

Adani Power

  1. DB Power Ltd
  2. Chattisgarh Power sector from Bhaskar group
  3. Support Properties Ltd
  4. Eternus Real Estate Pvt Ltd

So these are all the Adani companies in various fields. Now there is a massive slump in his company’s share prices. So, to revert back to Stock market Adani is taking steps to repay the debts and win back public trust.

Top questions on Hindenburg report on Adani

1) What is Hindenburg Disaster?

It is the airship disaster that occurred in the USA, California in 1937. As this airship was made by the german company called Zeppelin Company.

But the airship caught fire and finally out of 97 people 35 died in the disaster. As this incident was named after the german president Paul von Hindenburg.

2) How much did LIC lose after the Hindenburg Report?

As LIC is one of the major investors in the Adani group. Since there is a drastic drop in Adani shares value after the report. As a result, LIC lost 23,000 crores in just 3 days.

3) What is the condition of Adani stocks?

As Adani companies like Adani Green Energy, Total Gas, and Transmission lost 25% of their value on the stock market.

4) Adani losses in 2023 after Hindenburg report?

According to Reuters, Adani lost $65 billion in the stock market on Jan 31, 2023.

5) who is the founder of Hindenburg Research?

Nathan Anderson started the research and investment company in 2011.

6) How many employees does Hindenburg Research have?

There are only 5 members in the company.

7) Which is the best investigation of Hindenburg earlier Adani?

Hindenburg in September 2020, revealed the electric truck company Nikola. So, the company from being$34 billion came down to $ 1.3 billion in valuation. 

At last, Trevor Milton founder of Nikola was liable to pay $125 million as a fine because of the wrong claims.

8) How shell companies do Adani has?

Adani has over 38 shell companies but these companies are fake according to the report.

9) Who was the fraud in the diamond trading scam?

Gautam Adani’s brother-in-law, Samir Vohra is the fraud in the diamond trading scam.

10) What is Gautam Adani net worth in 2023?

Asia’s richest person, Gautam Adani lost his 3rd richest position and came down to the 11th position in Bloomberg Billionaires Index with $84 billion.

11) How many pages does Hindenburg report on Adani?

Hindenburg Research on January 24th released 106 pages of the report on Gautam Adani.

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