I think some hidden agenda as they mentioned " We hold short positions in Adani Group Companies through U.S.-traded bonds and non-Indian-traded derivatives, along with other non-Indian-traded reference securities." , i don’t know how this even possible ?
The Hindenburg report should not be taken lightly, I personally have reservations about the meteoric rise of Adani Enterprises and smell a lot of fishy stuff.
Also I’m not sure if @trader_dude is being sarcastic or serious.
same thing happened in 2021 , stocks have double trippled since then . FPO is going smoothly , Anchors have pumped in 6K crores. So , i think another rally coming in Adani
This is very well possible. Most activist investor does this. They build short position first. Then they come up with detailed research report explaining their rationale and lapses in governance
Hindenburg has previously done this with 15-16 other companies. That is their business model.
They have put their money where there mouth is (unlike in India, where research report publisher generally have no skin in game)
Before Adani, they had showed similar lapses in company Nikola, and they turned out to be accurate in that.
There are multiple instruments possible.
Adani would have multiple foreign currency bonds issued in various markets outside India.
This bonds can directly be shorted or instrument like CDS (Credit default Swap) can be used as derivative to take position against these bonds.
Also possible to take positions on OTC derivatives in western markets, where hindeburg would have found a willing counterparty who is long on Adani
What exactly they did, only they knows. But there are various ways for an institutional investor to short such a huge corporation.
Looks like we will see upper circuit on Monday for price to match FPO price! This Drama has highjacked the budget drama. Crazy Market times. Short Squeeze will be more brutal.
Adani group thinks these kind of statement help them to go through FPO. If banks have beleive in Adani, atleast 10% subscription should met on 1st day not 0.1%. It’s falling knife.
If stakeholders and investors had faith why it’s fallen more then 20% in 2 days.
There has to be some reasonable discount for anyone to take risk and keep money locked until stock is credited to demat. This is not ipo where people can hope for bumper listing.
Maybe they still have offshore funds left to push price lets see
Mutual funds it seems don’t hold these multibagger adani stocks.
If Adani actually went after them properly, then maybe doubts will ease. But the way these stocks have moved and their own self interest in these moves (as they pledge) does make you wonder.
Anyway, as long as there is movement up or down, i am happy.
Whatever is the truth, market doesn’t like uncertainties. When a player like Adani is questioned it is a big ? on India and our market. Besides market is near the top. Investors could be piling on the pain till a bottom is found.