Could be a short selling hatchet job but there’s no way Adani will roll the dice in the US courts.

They’ve rolled out the old scoundrel’s rebuttal. 

it's quite funny

Avoid doing business with any large Indian conglomerate. You’re welcome. And for god’s sake don’t invest in them. 

BCCI, anyone?

Holy fvck! And heh @ Hindenburg as a name for a short seller research group. High stakes stuff - someone’s gonna crash in flames for sure

This is a helluva read, thanks OP

I hope they’ve got some decent bodyguards at H’burg

Think i will invest in something safer like tulips

i really enjoyed their response 2 the adani threat 2 sue

something like

“we welcome legal action as we already have a long list of documents we would like 2 c as part of the discovery process”

plus 1 for heh at the name. Brilliant stuff. 

This is going to get messy. 

Apparently a lot of wealthy Indians were asked to invest in the rights offering to prop it up. No doubt gently encouraged by Modi. Might be a sensible approach but doesn't necessarily help the group's cause if it looks like it has to keep it in the 'family'.

Using a tiny auditing firm with 4 auditors and 11 support staff, where two 23/24 year olds fresh out of uni audit one of the worlds larger conglomerates gives the game away IMHO.

Madoff used the same ploy. Just saying.

I'd bet they're correct here, but Hindenberg have been wrong a lot before. 

Or rather they correctly identify accounting and related party shenanigans but don't go much beyond that to work out if the underlying company is still good. Plenty of their targets remain successful and are trading well above where they were when Hindenberg targeted them. 

The auditors thing seems like a massive red flag here though. 

Doubtless H'burg are shorting it to fook. They sound like a fairly similar outfit to Gabriel Grego/Quintessential Capital who a couple of times a year will release a brutal bear dossier on something quite big having researched the almighty fook out of it and be invariably right.

https://www.globalcapital.com/article/28muc3qhy146y31dszgu8/equity/society-benefits-from-short-sellers-gabriel-grego-cio-of-quintessential-capital

Or rather they correctly identify accounting and related party shenanigans but don't go much beyond that to work out if the underlying company is still good. Plenty of their targets remain successful and are trading well above where they were when Hindenberg targeted them. 

The bits about how sh*te the Adani fundamentals are are quite convincing

Timberrrrrrr! 

Question now is what will the contagion be.  

Surely this is a bit of a basket case? Does the group have real shareholders? I'd have thought that any old analyst would look at those leverage figures and run a mild. 

Big positions for SWF's and investment banks it seems, plus retail money. 

Sure hope the lovely ADIA and GIC don't lose all their money 

So, the message I’m receiving is to buy more right? 

Shades of NMC Health.