Adani's US$58B wealth wipeout: Key takeaways from the Hindenburg report

Adani Group is facing a series of complex problems that have raised questions about its business practices and dealings. These problems, ranging from allegations of fraud and illegal activities to issues related to transparency and corporate governance, have led to a growing concern among the public and investors about the company’s operations.

The result? A whopping US$58 billion wealth wipeout that has few parallels in the modern era, and has shaken the foundations of the Indian stock market.

One of the major issues faced by Adani Group is the allegations of fraud and illegal activities. For example, Gautam Adani’s younger brother, Rajesh Adani, has been accused by the Directorate of Revenue Intelligence (DRI) of playing a central role in a diamond trading import/export scheme in the early 2000s. Despite these accusations, he was later promoted to the position of Managing Director at the Adani Group, which has led to questions about the company’s commitment to ethics and corporate governance.

Another issue faced by the company is related to its ownership structure. A number of Mauritius-based entities, such as APMS Investment Fund, Cresta Fund, and LTS Investment Fund, hold shares in Adani-listed companies worth almost $8 billion. The origin of these funds is unclear…