India’s scandal-hit Adani Group forges on
Only seven months ago the Adani Group, India’s most valuable conglomerate at the time, looked as if it might topple. The multinational, which has interests in everything from rice to renewable energy, was accused of fraud, insider trading and fragile financing by Hindenburg Research, a New York-based short-selling firm. Though the group denied any wrongdoing, the valuation of Adani’s companies fell from over $200bn to under $100bn.
The Hindenburg affair is far from over. On August 31st, as India’s Supreme Court was poring over an official investigation into the claims, a report by the Organized Crime and Corruption Reporting Project, an international consortium of journalists, made new accusations of share-trading manipulation and reporting violations (which the group also denies). Yet even as the scandal drags on, the group seems to have found its feet. Share prices have stabilised. Earnings are up. Its buoyancy reflects the premium placed on any company that can keep building in a country where that can be all but impossible.
The Hindenburg report and its aftermath have embarrassed not only the Adani Group but India. Following the report’s publication in January the Supreme Court ordered the Securities and Exchange Board of India (SEBI), a market regulator, to investigate its allegations. After its deadline was extended, SEBI filed a largely complete report to the court on August 25th. Reuters reported that SEBI had examined 13 transactions and uncovered violations, albeit “technical” ones, that could result in fines. But a hearing due on August 29th was postponed. The sluggish official response has fed suspicions that the Adani Group’s dirty laundry will not be fully aired.
2023-08-31 08:03:12
Original from www.economist.com
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