Adani Stock Takes $100 Billion Hit: What to Know | WSJ

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– $10 billion, then47 billion, then 100 billion. The Adani Group's seven listed companies have plummeted in marketvalue after a report from short sellerHindenburg Research accused the conglomerate of wide ranging fraud. The Adani Group, headed bybillionaire Gautam Adani, said The report is fullof baseless allegations. Ben Foldy covers financialand business issues for The Wall Street Journal.

And explains what you need to know. – The Adani Group is acollection of companies. They run ports, they run airports, they run coal-powered powerplants, they run coal terminals. Basically all the thingsthat you kind of need to build a fast growing,developing economy like India, and Hindenburg Research looksfor companies that they allege are frauds or have accounting issues, and they then bet against the stock,.

And then they publish the research showing their allegations,hoping that it will go down. They were largely responsible for almost everything that happened with a company called Nikola, which led to the founder being indicted on fraud charges and convicted last year in one of the biggest cases ofthat type in recent history. Hindenburg's allegations about Adani.

Are largely around a network of offshore companies that they allege are tied to the Adani family or their associates that theyuse to manipulate the stock. – The report is a malicious combination of selective misinformation,stale, baseless and discredited allegationsthat have been tested and rejected by India's highest codes. – Adani responded with a 413-page report.

What was interesting aboutthe response is that it opened on this note of Indiannationalism, which really kind of points to a defensestrategy for the company but also, it points tothe company's identity as being part and parcelof the Indian growth story. – The fundamentals of ourcompany are very strong. Our balance sheet ishealthy and assets robust. We will continue to focus on a long-term value creation and growth.

– Adani has already suffered quite a bit. $100 billion in market capis nothing to sneeze at. To have something movethe market this much within a couple days is pretty remarkable. (pensive music)

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3 thoughts on “Adani Stock Takes $100 Billion Hit: What to Know | WSJ

  1. He works as a public face for the BJP bag together .BJP is investing money thru SBI and LIC thru adani , thru airport , sea port , coal mines love nationwide resources . Adani owned by some unknown companies from Mauritius .

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