© Reuters. FILE PHOTO: Adani logo and decreasing stock graph is seen in this illustration taken January 31, 2023. REUTERS/Dado Ruvic/Illustration
NEW DELHI (Reuters) – Indian tycoon Gautam Adani’s conglomerate has been pummelled by a stock rout and come under increasing scrutiny after U.S. short-seller Hindenburg Research issued a damaging report.
Here is a timeline of the fallout:
JAN. 24
* Hindenburg accuses Adani Group of stock manipulation and improper use of offshore tax havens that obscure the extent of stock ownership of Adani family members in group firms. It also raises concerns about high debt and what it calls excessive valuations.
It says it holds short positions in Adani Group companies through U.S.-traded bonds and non-Indian-traded derivative instruments.
Jan. 25
* Adani Group calls the Hindenburg report “a malicious combination of selective misinformation and stale, baseless and discredited allegations that have been tested and rejected by India’s highest courts”.
JAN. 26
* Adani Group says it is evaluating “remedial and punitive action” against Hindenburg under U.S. and Indian laws.
* Hindenburg says it fully stands by its report and believes “any legal action taken against us would be meritless”.
JAN 27
* Billionaire investor William Ackman says he finds the Hindenburg report “highly credible and extremely well researched”.
* Adani Enterprises, the conglomerate’s flagship company, begins a $2.5 billion share offering for retail investors.
* India’s market regulator increases scrutiny of Adani deals done over the past year, according to sources.
JAN 28
* Index provider MSCI says it is seeking feedback on Adani Group and associated securities and is aware of the Hindenburg report.
JAN 30
* Adani Group issues a detailed riposte to the Hindenburg report, saying it complies with all local laws and had made the necessary regulatory disclosures.
* Losses in the group’s main seven stocks top $65 billion.
* One of Adani Group’s biggest shareholders, state-run Life Insurance Corporation (LIC), says it is reviewing the group’s response to concerns raised by Hindenburg.
JAN 31
* Adani Enterprises’ offering is fully subscribed. Investors in the 30% anchor portion included Maybank Securities and Abu Dhabi Investment Authority, India’s HDFC Life Insurance and LIC.
FEB. 1
* Australia’s corporate regulator says it will review the Hindenburg report.
* Reuters reports India’s market regulator is examining the crash in Adani Group shares and looking into any possible irregularities in the share sale.
* Adani Enterprises calls off the share offering citing an “unprecedented situation and the current market volatility”.
FEB. 2
* India’s central bank asks local banks for details of their exposure to Adani Group companies.
* Citigroup (NYSE:)’s wealth unit stops extending margin loans to its clients against Adani securities.
* Opposition lawmakers protest against the Adani group in parliament.
* Market losses for the group’s main seven stocks top $100 billion.
FEB. 6
* India’s opposition parties take to the streets demanding a probe into the Hindenburg allegations.
FEB. 8
* France’s TotalEnergies says it is waiting for results of the audit launched in response to the Hindenburg Research report before extending its partnership with Adani to produce green hydrogen.
FEB. 9
* Norways’s sovereign wealth fund says it has sold its stakes in three Adani companies that were worth just over $200 million.
* Index provider MSCI says it will cut weightings of four Adani Group companies, including Adani Enterprises, in its indexes after reassessing the number of freely traded shares.
FEB. 10
India’s market regulator is investigating Adani Group’s links to some of the investors in the conglomerate’s aborted $2.5 billion share sale, two sources said.
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