The Adani Group, one of India's biggest conglomerates, has brought in top US law firms to assist with civil and criminal charges brought by the Eastern District of New York and the Securities and Exchange Commission (SEC). This is in connection with allegations that the group paid over $250 million in bribes to Indian government officials to secure solar energy contracts. The designated judge overseeing the cases is one of the top firms, Quinn Emanuel, which boasts an impressive track record in business litigation.
A day before the Mahakumbh 2025 inauguration, Adani Group chairman Gautam Adani met with Trustees and officials of the iconic Gita Press to pledge the distribution of one crore copies of 'Aarti Sangrah' to devotees during the auspicious Shahi Snan. Adani also shared pictures of his meeting and expressed gratitude for the institution's 100 years of service in promoting Sanatan literature. Furthermore, Adani Group has joined hands with ISKCON to provide meals for the lakhs of devotees and pilgrims expected for the Kumbh Mela.
The recent uproar surrounding the shutdown of Hindenburg Research displays a misunderstanding of the purpose of short selling. Instead of addressing the flaws in certain companies, society has shifted the focus to the practice itself. This reflects a larger issue of how financial news is consumed and the media's role in shaping public perception. The real issue lies in the weaknesses exposed by these reports, not in the reports themselves. Hindenburg's past successful research, such as their report on the Adani Group, indicates the importance of short selling in uncovering governance failures and unjust valuations.
Hindenburg Research, a US-based short seller and financial research firm, announced its disbanding following its recent allegations of stock manipulation and accounting fraud against the Adani Group. The organisation, founded in 2017, specialized in uncovering unconventional information and had a track record of leading to civil and criminal charges against individuals, including billionaires and oligarchs. The Adani Group, which has been the target of these allegations, has denied all claims and currently facing legal trouble in an alleged bribery case in the US.
In a letter, founder of Hindenburg Research, Nate Anderson, has announced the disbandment of the research firm after the completion of their ongoing pipeline of ideas. Anderson stated that there is no specific reason for this decision, but rather a realization that his intense focus on the company has come at the cost of missing out on other aspects of life. The team's work has led to the charging of nearly 100 individuals, including billionaires, and has had a significant impact on the stock market, with the Adani group seeing a major decline in market capitalization following Hindenburg's report. However, the Supreme Court has since given a clean chit to the Adani group, stating that the report could not be relied upon without verification.
Billionaire Gautam Adani's group announced its exit from FMCG joint venture Adani Wilmar by selling its entire 43.94% stake to the Singaporean partner Wilmar International and in the open market. The estimated $2 billion deal is the first major move since the US bribery indictment. Adani's stake will be sold for Rs 12,314 crore to Wilmar and an additional 13% will be sold through OFS to meet minimum public shareholding requirements. This move allows Adani to focus on turbocharging their growth in core infrastructure businesses.
The Bombay High Court dismissed a petition challenging the Maharashtra government's decision on the Dharavi slum redevelopment project in Mumbai. The court upheld the tender awarded to Adani Properties Private Limited, stating that the grounds raised in the petition lacked force. The Adani Group emerged as the highest bidder for the project in the 2022 tender process, after the previous tender in 2018 was cancelled.
The recent Bihar Investor Summit 2024 saw a number of major announcements in the renewable energy sector, with NHPC pledging to invest Rs 5,500 crore, IOC announcing an investment of Rs 21,000 crore for refinery expansion, and NTPC revealing plans for a nuclear project. The Adani Group also announced a major investment of Rs 20,000 crore in a power plant in the state. With a focus on boosting industrial growth, the summit showcased Bihar's potential for investment in the renewable energy sector, particularly in fields like manufacturing and leather industry. The state has already attracted over 3,800 industry proposals, as confirmed by the Chief Secretary.
The state of Bihar is gearing up for its Investor Summit 2024, which will focus on highlighting the investment potential and growth opportunities in the manufacturing, renewable energy, and leather industries. With major corporations like Adani Group, IOC, Shree Cement, NTPC, and NHPC announcing multi-billion rupee investments in power plants, refineries, and cement plants, the state is set to attract a huge influx of capital and boost its economic development. The summit, scheduled for December 2024, is expected to provide a platform for investors to engage with government officials and business leaders and explore potential partnerships and collaborations. With the aim to transform Bihar into a vibrant industrial hub, the state government is leaving no stone unturned to showcase its strengths and attract investments.
Adani Total Gas, a subsidiary of the Adani Group, saw a surge in their share price after securing USD 375 million in funding. However, this positive news was followed by reports of city gas prices expected to rise by Rs 2-3/kg due to lower APM gas prices. In the midst of this, the Adani Total Gas also announced a 6% increase in profits for the second quarter of the year. Despite the success of Adani Total Gas, other gas companies such as Indraprastha Gas and Mahanagar Gas saw a decline in their share prices due to cuts in gas supply.