Adani made a 413-page response to @HindenburgRes 's report
I read it so that you don't have to
Summarising it below. A thread๐งต๐
I read it so that you don't have to
Summarising it below. A thread๐งต๐
1/ Adani Group is Deeply over leveraged
- Group has executional excellence
- Net Debt to EBITDA has reduced from 7.6x to 3.2x
- EBITDA has grown at 22%, Net Debt has grown at 11% CAGR in last 9 yrs
- Group has executional excellence
- Net Debt to EBITDA has reduced from 7.6x to 3.2x
- EBITDA has grown at 22%, Net Debt has grown at 11% CAGR in last 9 yrs
2/ Highly pledged promoter stake in group cos
- The promoter pledge has reduced drastically in the last few years
See chart ๐
- The promoter pledge has reduced drastically in the last few years
See chart ๐
3/ Diamond Trading Tax Evasion & Over-Invoicing
๐ถ Allegations made in the past have been highlighted
๐ถ Issues have been settled with the courts already
๐ถ Supreme Court has also exonerated the group of all charges
๐ถ Allegations made in the past have been highlighted
๐ถ Issues have been settled with the courts already
๐ถ Supreme Court has also exonerated the group of all charges
3/ Payment of โน780 Crores to an Offshore Entity
The payment was made by AEL on account of payment for Terminal Charges in Australia
Hindenburg Claimed that NQXT is owned by Adani group co
Not paying them would've been a Related Party Transaction, not at arm's length
The payment was made by AEL on account of payment for Terminal Charges in Australia
Hindenburg Claimed that NQXT is owned by Adani group co
Not paying them would've been a Related Party Transaction, not at arm's length
4/ FIIs controlling Adani's public float
Hindenburg claimed Adani Green chose a broker for share sale in 2019 accused of Market Rigging
Name: Monarch Networth Capital
The stake of 'certain' FIIs increased after share sale indicating that they participated in it
Contd..๐
Hindenburg claimed Adani Green chose a broker for share sale in 2019 accused of Market Rigging
Name: Monarch Networth Capital
The stake of 'certain' FIIs increased after share sale indicating that they participated in it
Contd..๐
Response by Adani Group on this๐
These claims are:
๐ถ Unsubstantiated accusations
๐ถ Without evidence
๐ถ No understanding of Indian laws and related party disclosures
These claims are:
๐ถ Unsubstantiated accusations
๐ถ Without evidence
๐ถ No understanding of Indian laws and related party disclosures
5/ Adani's corporate structure is convoluted - has 578 subsidiaries
- As per Hindenburg, Adani group has 6,025 related party transactions in FY22
- Adani: Infra biz requires creating a subsidiary for each project
As per my experience in Big 4s, Adani group is right here
- As per Hindenburg, Adani group has 6,025 related party transactions in FY22
- Adani: Infra biz requires creating a subsidiary for each project
As per my experience in Big 4s, Adani group is right here
6/ Questions on Overseas Entities Buying Adani Group Co shares
- Hindenburg claims that Adani is controlling the public float via foreign entities (ultimately controlled by group)
- Adani group refutes the claim saying that these are public shareholders not related to the group
- Hindenburg claims that Adani is controlling the public float via foreign entities (ultimately controlled by group)
- Adani group refutes the claim saying that these are public shareholders not related to the group
7/ Adani getting Journalists jailed
- Hindenburg claims that Adani has got journalists silenced by:
A. Getting them jailed or
B. Through Litigation
using their political connection
Read on to know Adani group's response๐
- Hindenburg claims that Adani has got journalists silenced by:
A. Getting them jailed or
B. Through Litigation
using their political connection
Read on to know Adani group's response๐
Adani group says that a journalist didn't appear before the court
And consequently a non-bailable warrant was issued against him
The group claims that they'll take the legal recourse where the other person is falsely accusing the group (not in cases of criticism)
And consequently a non-bailable warrant was issued against him
The group claims that they'll take the legal recourse where the other person is falsely accusing the group (not in cases of criticism)
8/ Auditor's Experience Issue
- Shah Dhandharia & Co. is a peer reviewed ICAI firm
- Hindenburg has shown utter disgrace by revealing PAN of the CAs
- They are duly qualified CAs and are very well equipped to sign the financials as per the law
- Shah Dhandharia & Co. is a peer reviewed ICAI firm
- Hindenburg has shown utter disgrace by revealing PAN of the CAs
- They are duly qualified CAs and are very well equipped to sign the financials as per the law
Disclaimer: These are not my opinions but just:
[1] Claims made by Hindenburg AND
[2] Their responses by Adani Group
Certain topics have been curtailed for the sake of brevity
You can comment on which specific you want another tweet
I'll add it below this thread
[1] Claims made by Hindenburg AND
[2] Their responses by Adani Group
Certain topics have been curtailed for the sake of brevity
You can comment on which specific you want another tweet
I'll add it below this thread
Creating content full time requires:
[1] Staying out a job and
[2] A lot of time commitment
Your love is all I need๐๐
If you liked this summary, kindly retweet the first tweet๐
[1] Staying out a job and
[2] A lot of time commitment
Your love is all I need๐๐
If you liked this summary, kindly retweet the first tweet๐
Follow me (@BahlKanan) for more on:
[1] Personal Finance
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Will keep you updated on more developments on this issue
[1] Personal Finance
[2] Investing
[3] Startups
Will keep you updated on more developments on this issue
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