Thread by @BahlKanan

Adani made a 413-page response to @HindenburgRes 's report

I read it so that you don't have to

Summarising it below. A thread🧵👇

1/ Adani Group is Deeply over leveraged

- Group has executional excellence

- Net Debt to EBITDA has reduced from 7.6x to 3.2x

- EBITDA has grown at 22%, Net Debt has grown at 11% CAGR in last 9 yrs

2/ Highly pledged promoter stake in group cos

- The promoter pledge has reduced drastically in the last few years

See chart 👇

3/ Diamond Trading Tax Evasion & Over-Invoicing

🔶 Allegations made in the past have been highlighted

🔶 Issues have been settled with the courts already

🔶 Supreme Court has also exonerated the group of all charges

3/ Payment of ₹780 Crores to an Offshore Entity

The payment was made by AEL on account of payment for Terminal Charges in Australia

Hindenburg Claimed that NQXT is owned by Adani group co

Not paying them would've been a Related Party Transaction, not at arm's length

4/ FIIs controlling Adani's public float

Hindenburg claimed Adani Green chose a broker for share sale in 2019 accused of Market Rigging

Name: Monarch Networth Capital

The stake of 'certain' FIIs increased after share sale indicating that they participated in it

Contd..👇

Response by Adani Group on this👇

These claims are:
🔶 Unsubstantiated accusations
🔶 Without evidence
🔶 No understanding of Indian laws and related party disclosures

5/ Adani's corporate structure is convoluted - has 578 subsidiaries

- As per Hindenburg, Adani group has 6,025 related party transactions in FY22

- Adani: Infra biz requires creating a subsidiary for each project

As per my experience in Big 4s, Adani group is right here

6/ Questions on Overseas Entities Buying Adani Group Co shares

- Hindenburg claims that Adani is controlling the public float via foreign entities (ultimately controlled by group)

- Adani group refutes the claim saying that these are public shareholders not related to the group

7/ Adani getting Journalists jailed

- Hindenburg claims that Adani has got journalists silenced by:

A. Getting them jailed or
B. Through Litigation

using their political connection

Read on to know Adani group's response👇

Adani group says that a journalist didn't appear before the court

And consequently a non-bailable warrant was issued against him

The group claims that they'll take the legal recourse where the other person is falsely accusing the group (not in cases of criticism)

8/ Auditor's Experience Issue

- Shah Dhandharia & Co. is a peer reviewed ICAI firm

- Hindenburg has shown utter disgrace by revealing PAN of the CAs

- They are duly qualified CAs and are very well equipped to sign the financials as per the law

Disclaimer: These are not my opinions but just:

[1] Claims made by Hindenburg AND
[2] Their responses by Adani Group

Certain topics have been curtailed for the sake of brevity

You can comment on which specific you want another tweet

I'll add it below this thread

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If you liked this summary, kindly retweet the first tweet👇

https://twitter.com/BahlKanan/status/1619780339165200384?s=20&t=ZeG709I1tG2ao_FBTVPicg

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Will keep you updated on more developments on this issue

@AdaniOnline #ADANIENT