On January 25, the US short-selling agency Hindenburg Research (Hindenburg Research) released a report on the Indian energy giant Adani Group, saying that the corporate empire controlled by Gautam Adani, the richest man in Asia, is " Brazenly engaged in stock manipulation and accounting fraud” over the past few decades” and saddled with “massive debts” that put the entire group’s financial situation in jeopardy.

　　After the report was released, the share prices of listed companies under the Adani Group fell one after another.

According to the Financial Times, in the afternoon trading in Mumbai, the share prices of Adani Group's seven listed companies fell by an average of 4.6%, and the total market value fell by about 762 billion rupees (equivalent to about 63.4 billion yuan).

　　In the report, Hindenburg Research also listed 88 questions that "we hope the Adani Group will be happy to answer."

　　Adani Group chief financial officer Jugeshinder Singh said the group was "shocked" by the Hindenburg report, calling it a "malicious combination of selective misinformation and stale, baseless and uncredible allegations".

　　Singh said the report, scheduled days before the Adani Enterprises share offer, was aimed at "damaging the Adani Group's reputation" and trying to undermine the group's subsequent public offering.

He added that the group "has always complied with all laws".

　　It is reported that Adani announced last year to increase the number of freely traded shares of Adani company, and the public bidding for the shares planned to raise up to 200 billion rupees started on January 27.

The company's stock price rose more than 3,300% in three years.

　　However, Adani Group's debt problem is not groundless.

According to Bloomberg News, in the fiscal year ending March 31, 2022, Adani Group's total debt has increased by 40% to 2.2 trillion rupees (equivalent to about 184.36 billion yuan), which is equivalent to nearly seven times the pre-adjusted income.

CreditSights, a credit research arm of Fitch Group, pointed out in September last year that Adani Group was "overleveraged".

　　In its report, Hindenburg Research said it was based on a two-year investigation, conversations with former executives and executives at the company, a review of thousands of documents and field visits to multiple countries.

It also said it would take a short position in Adani Group "through US-traded bonds and non-India-traded derivatives".

　　Adani Group gradually developed from Adani Exports Ltd, which Adani founded in 1988.

At present, the group's business spans energy, ports and logistics, mining and resources, natural gas, defense and aerospace, and airports, including seven listed companies. More than 60% of the group's revenue comes from coal business.

　　In the past three years, the share prices of the group's seven major listed companies have soared by an average of 819%.

Adani also ranks third on the Bloomberg billionaires list at the end of 2022 with assets of US$121 billion.

　　"Even if you ignore our findings, Adani Group's seven major listed companies are overvalued, with an 85% downside potential from a fundamental perspective alone," Hindenburg Research said in a report.

　　The Paper reporter Wang Jingjing