Hindenburg alleges Gautam Adani's brother pledged Adani Group promoter stakes for $240-mn loans from Russian bank

US short seller Hindenburg Research fired another salvo at Adani Group and it involves Vinod Adani, the elder brother of Gautam Adani.

"Forbes is out with a major article evidencing hidden Adani promoter pledges: A private Vinod Adani-controlled Singaporean entity pledged Adani promoter stakes for $240m in loans from a Russian bank. Zero disclosure of these pledges to Indian exchanges," tweeted Hindenburg on Friday.

Seven listed firms of the Adani Group have shed some $125 billion in market value since Hindenburg's January report, which accused the ports-to-power conglomerate of improper use of tax havens and stock manipulation, which Adani Group denied.

"Vinod Adani, the longtime Indian expat, is at the heart of a global web of offshore companies with ties to the Adani Group. Just don’t call him a related party," said the Forbes article. Vinod Adani is based in Dubai and manages trading businesses there, as well as in Singapore and Jakarta. He is the richest non-resident Indian in the world, according to the Hurun India Rich List.

The article claimed that Pinnacle Trade and Investment Pte. Lte., a Singapore company indirectly controlled by Vinod Adani, had in 2020 entered into a loan agreement with Russia’s state-owned VTB Bank, which was sanctioned by US last year due to Ukraine war. By April 2021, Pinnacle had borrowed $263 million and lent out $258 million to an unnamed related party. Later that year, Pinnacle offered two investment funds — Afro Asia Trade and Investments Limited and Worldwide Emerging Market Holding Limited — as guarantors for the loan, according to Singapore filings, said the article.

Both Afro Asia Trade and Worldwide are large Adani Group shareholders. Together, the two funds hold $4 billion (as of February 16 market prices) of stock in Adani Enterprises, Adani Transmission, Adani Ports, and Adani Power, all of which acknowledge the funds as 'promoter' entities.

Neither fund has disclosed share pledges in Indian financial filings for the four Adani companies they’re invested in.

Earlier this month, the Securities and Exchange Board of India (SEBI) told the Supreme Court it was looking into the allegations made against the Adani Group.

SEBI has been examining trade patterns and any potential irregularities in the $2.5-billion share sale of flagship company Adani Enterprises that the Adani Group was forced to cancel due to the plunge in its shares, reported Reuters.