The Adani Group stocks continue to bleed on Dalal Street since Hindenburg Research came out with its report accusing the conglomerate of fraud and accounts manipulations over the years. 
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The Adani Group stocks continue to bleed on Dalal Street since Hindenburg Research came out with its report accusing the conglomerate of fraud and accounts manipulations over the years. Adani stock rout: Nathan Anderson, the founder of the New York-based Hindenburg Research, whose scathing report on the Adani Group last month led to a major rout in its shares, has said today that Vinod Adani, brother of billionaire Gautam Adani, played a key role in financing deals.
Tweeting a news story by Bloomberg on Thursday, Anderson said that it is now confirmed that Vinod negotiated financing deals for the Adani Group and was key player in the group's largest acquisition, even though his brother has refuted the claims that Vinod has no official role and is not a related party.
The Bloomberg report claimed that when Adani Group neared the completion of its $10.5 billion purchase of two cement businesses, Ambuja Cement and ACC, last year, the ports-to-energy conglomerate and its banks put out some particularly complicated filings.
The report said that in the 85-page document submitted by the company, there was a diagram of seven unlisted firms registered in the British Virgin Islands, Mauritius and Dubai. They were all interlinked to each other, and one would be buying the cement company’s shares in the open market.
The report claimed that the company papers didn’t mention billionaire Gautam Adani as the ultimate beneficiary of the seven unlisted entities. Instead, it was mentioned that their beneficial owners were his older brother, Vinod, and Vinod’s wife Ranjanben.
As per the company’s website, Vinod and Ranjanben do not hold managerial positions in any listed Adani companies, and they aren’t among the top executives listed.
The report claimed that though Vinod and his wife’s names are hidden publicly, it is clear through the documents submitted for the group’s largest-ever acquisition that Vinod has commanding influence in the Adani group. It further claimed that the acquisition papers clearly show how the Adanis “use a maze of small companies when doing big business”.
Even though Vinod doesn’t hold any formal positions or participate in daily operations, he’s a key negotiator for the Adani Group when it’s raising funds from international markets and is involved in planning the group’s strategic direction, the Bloomberg report quoted a source familiar with the matter.
In the last few weeks, Vinod, who is based in Dubai and claims to be a Cypriot national as per Adani Group’s filings, has come under scanner after the Hindenburg report claimed that Vinod was a key negotiator in many deals of the group.
“Vinod Adani, through several close associates, manages a vast labyrinth of offshore shell entities," the Hindenburg report said identifying entities in Mauritius, Cyprus, the United Arab Emirates, Singapore, and several Caribbean Islands. These entities “regularly and surreptitiously transact with Adani," it said.
The Hindenburg report does not contain any details on the cement acquisition by the Adanis.
In its 413-page rebuttal to Hindenburg’s allegations, the Adani Group said that Vinod doesn’t hold any managerial position in the group.
“Vinod Adani does not hold any managerial position in any Adani listed entities or their subsidiaries and has no role in their day-to-day affairs," an Adani Group spokesperson said in response to a detailed set of questions sent by Bloomberg News. “These questions are of no relevance, and we cannot comment on the business dealings and transactions of Vinod Adani."
The Bloomberg report claimed that the Adani Group is a vast conglomerate with listed and unlisted subsidiaries doing business in everything from ports to power, with a reach spanning from India to Africa and Australia.
Several debt filings have Vinod’s name as a key figure within the conglomerate. The filings mention that the Adani Group should be understood to mean Vinod, Gautam and another brother Rajesh, who is the managing director, as well as other entities such as a family trust.
Meanwhile, the Adani Group stocks continue to bleed on Dalal Street since Hindenburg Research came out with its report accusing the conglomerate of fraud and accounts manipulations over the years.
Shares of three group companies -- Adani Total Gas, Adani Green Energy and Adani Transmission -- emerged as the top loser since January 24. With a fall of 78.5 per cent, Adani Total Gas declined the most in the 21 trading session. The scrip retreated to Rs 834.95 on February 22 from 3885.45 on January 24, 2023. Adani Green Energy and Adani Transmission also tanked 71.8 per cent and 71.4 per cent, respectively, during the same period.
On Thursday, shares of Adani Total Gas, Adani Transmission, and Adani Green Energy were locked in the lower price bands at the opening bell.
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