The Adani Group faces fresh allegations of bribery and fraud, adding to a tumultuous year marked by accusations from Hindenburg Research and global scrutiny. Despite the challenges, the share prices of Adani Group companies show resilience. Big investors announced their support. However, things are not looking too good for the Adani Group. Investors should be very cautious in view of the allegations.
The central allegation of the Hindenburg Research report against the Indian Adani Group is that the listed shares of the group's companies were manipulated through offshore entities controlled by Gautam Adani and his family. Cyprus-based entity New Leaina Investments Ltd is allegedly at the center of this stock manipulation scheme. Until June-September 2021, this investment company owned over U.S. $420 million in Adani Green Energy shares, accounting for 95% of its portfolio.