Hindenburg shorts India's Adani Group, cites debt, accounting concerns
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BENGALURU, India: Hindenburg Research said on Wednesday (Jan 25) it held short positions in Adani Group, accusing the Indian conglomerate of improper extensive use of entities set up in offshore tax havens and expressing concern about high debt levels.
The group, which is led by Gautam Adani, the world's third richest man according to Forbes, dismissed the US short seller's claims as baseless.
The report, which comes days ahead of a US$2.5 billion share offering by flagship firm Adani Enterprises, sparked sharp falls in shares of Adani group firms.
Hindenburg, which has short positions in Adani companies through US-traded bonds and non-Indian-traded derivative instruments, said key listed companies in the group had "substantial debt" which has put the entire group on a "precarious financial footing".
It also said that seven Adani-listed companies have an 85 per cent downside on a fundamental basis due to what it called "sky-high valuations".
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