The Collapse of Adani's House of Cards - The Hindenburg Effect - Page 4

https://twitter.com/ravinderkapur2/status/1622054489493766147?s=46&t=K4fJsCqTO0cX3WPdjRGu9w

Very good pt Madhuri. I was thinking about the same last night. Dhirubhai new the game well. Very often big business people come under scrutiny. It's nothing less then a financial war.

Such an interesting topic…..

Short sellers are motivated by impact of what they say….

There are many in USA that have gone after companies making presentations even and sometimes failed with significant losses as a result of not having desired impact for their short positions….

It’s impossible to say what happens with Adani group unless govt/agencies find proof of fraud… then it could get pretty crazy as it can be a “house of cards”…

Interesting thing is there are huge number of companies in USA that settle with the investigations with “fines without any admission of wrongdoing”….

One should see the “insider job - documentary” …

All said and done.. one report and the impact on him has been huge…already….

very well explained https://youtube.com/watch?v=L1UC_bnCk8k&si=EnSIkaIECMiOmarE

Originally posted by: mnx12

Stock market investment are based on company's performance, not on owner's caste. Investors want returns. Lot of hard work is involved. Main challenge is to survive& come out of it. Coming days will give clear indication about future of his companies.

Hi, I know this was directed at my comment which was in response to Vijay's comment about Adani and Ambani not having inherited their wealth when, in fact, they did.

Ambanis are Baniyas, and Adani's father was a textile merchant himself. Caste matters because for anyone to start up a business—let alone get it listed on BSE— one needs a principal capital. An LC individual would find it much more difficult to get this starting capital becsuse a) they wouldn't have the networking opportunities that Ambani as someone from a merchant caste had. Let alone the business associates of Adani's father opening doors for him. b) Organised sector provides credits on collateral— an LC whose forefathers did not accumulate much wealth would not have a satisfactory collateral for a bank to invest. Something Adani and Ambani had. They are not "self-made" billionaires. There is no such thing to begin with.

I know it's useless to state here but there are studies done on Benaras weaver communities and how they cannot break out on their own because of how predatory unorganised caste-based credit system is :

https://www.researchgate.net/publication/365050972_A_Study_of_Socio-Economic_Conditions_of_Handloom_Weavers_in_Uttar_Pradesh_of_India/download

https://www.indianlabourarchives.org/bitstream/20.500.14121/1073/1/Pauperisation%20of%20Handloom%20Weavers%20of%20Banaras%3A%20An%20Oral%20History%20Documentation.pdf

https://research.gold.ac.uk/id/eprint/22604/2/Caste_Credit_JDS_revised_version.pdf

https://harvardpolitics.com/casteism-camouflaged-as-culture/

And all of these are Keynesian economists studying these things.

Check this one also:

https://youtu.be/4WSAeT_XDaI

Some more updates:

• “Both SBI and LIC have issued detailed statements… the Chairperson, the CMD has himself come out and explained how they are not overexposed… and also said, look, we are sitting over profits for the exposure… They have very clearly said their exposure is well within the permitted limits and they are even now – with the valuation falling as well – sitting over profit,” Union Finance Minister Nirmala Sitharaman said in an interview to Network18.
  
• NSE, BSE put 3 Adani Group companies under short-term additional surveillance measure. As many as three Adani group companies, including Adani Enterprises, have come under short-term additional surveillance measure (ASM) framework of the BSE and NSE, according to the latest data available with the exchanges on Thursday
  
• The Reserve Bank of India today said the country's banking system remains resilient and stable, amid concerns about the exposure of lenders to Adani group companies. "Various parameters relating to capital adequacy, asset quality, liquidity, provision coverage and profitability are healthy.
  
• Adani Enterprises Ltd (AEL) has reportedly dropped a plan to raise Rs 1,000 crore ($121.65 million) through bonds, after a sell-off in its shares forced the flagship to pull the plug on a Rs 20,000- crore follow-on public offering (FPO).
  
• Referring to Adani Group, SEBI said, "During past week, unusual price movement observed in stocks of a business conglomerate". The market regulator added that it is committed to ensuring that stock market functions in an uninterrupted, transparent, efficient manner as has been case so far.
  
• A PIL has been filed in the Supreme Court, seeking the prosecution of short seller Nathan Anderson of US-based firm Hindenburg Research and his associates in India and the US, for allegedly exploiting innocent investors and the “artificial crashing” of the Adani Group's stock value in the market.
  

Meanwhile, Adani is yet to initiate any legal action against Hindenburg. An interesting twist!

On some post I saw earlier…. I know we use the word caste in India and casteism exists in pockets. Similar to racism here.

But overall — networking is at the end of the day a business reality. So are communities supporting each other - no matter where you go in the world. With so many variables in life — commonality finds a way to work together and that is just human nature (not always casteism etc).

Coming back to topic of Adani … I saw some investors speak up about their due diligence at time was investment and everything checked out.

Anyone wondering about the timing of this report. Sooo close to him about to raise equity ? if he is found fraudulent I am sure we will say. It was good. So many got saved. But if not … then … what is the consequence to the short selling form ? 🤔🤔🤔

either way. One hopes that Indian regulators and oversight bodies across the board come out stronger regardless of the outcome …

Originally posted by: KJasoosChulbulP

On some post I saw earlier…. I know we use the word caste in India and casteism exists in pockets. Similar to racism here.

But overall — networking is at the end of the day a business reality. So are communities supporting each other - no matter where you go in the world. With so many variables in life — commonality finds a way to work together and that is just human nature (not always casteism etc).

Coming back to topic of Adani … I saw some investors speak up about their due diligence at time was investment and everything checked out.

Anyone wondering about the timing of this report. Sooo close to him about to raise equity ? if he is found fraudulent I am sure we will say. It was good. So many got saved. But if not … then … what is the consequence to the short selling form ? 🤔🤔🤔

either way. One hopes that Indian regulators and oversight bodies across the board come out stronger regardless of the outcome …

Bold1- Which is technically true, but if the system as a whole seems to exclude certain erstwhile marginalised communities consistently, then it points towards a deeper flaw that should ideally be rectified.

Bold 2- this is interesting to hear, more so because many of the knowledgeable finance folks on SM always appeared to be cautious while talking about the group's stocks over the last couple of years, saying that the PE ratios were alarmingly high. It's also perhaps worth mentioning that most mutual funds appeared to avoid it (except Quant, which has exited its holdings completely after the HB report).

Another update:

https://www.forbes.com/sites/johnhyatt/2023/02/03/adani-enterprises-failed-share-offering-exposes-more-investment-funds-with-questionable-ties-to-the-adani-group/?sh=79efb2626ad9