The Adani Group is facing an unprecedented crisis following Hindenburg Research’s allegations. Meanwhile, there is a new controversy. Morning Context reports that the owner of the cement companies ACC and Ambuja Cements acquired by Adani is neither the Adani Group nor Gautam Adani. Gautam Adani’s elder brother Vinod Adani reportedly controls these companies.
Last year, in September, cement companies ACC and Ambuja Cements were acquired from Swiss company Holcim for a record amount of $10.5 billion (roughly Rs. 85,000 crore). There were also reports that through this deal, Adani became the largest cement company in the country behind Aditya Birla’s Ultra Tech. Also Read: Adani Ports ‘No More’ than Hindenburg; This stake is the strength of Adani Adani had informed that a special company (Special Purpose Vehicle or SPV) named Endeavor Trade & Investment Limited was acquired by Ambuja and ACC. But this SPV is a Mauritius-based company owned by Vinod Adani, the report points out citing the final offer letter of Ambuja Cements.
Forbes pointed out that Vinod Adani’s name was mentioned at least 151 times in the Hindenburg Report. The main allegation is that shell companies are being set up abroad to evade taxes and manipulate share prices. According to the report, Vinod Adani has 38 shell companies abroad. But there is no mention in the Hindenburg report about the acquisitions of ACC and Ambuja Cements.
Also Read: 50 days since Hindenburg ‘roared’; 10 Where are Adani shares now? Adani Group denied these allegations in its reply to Hindenburg. The Adani Group has stated that Vinod Adani has no role in the day-to-day operations of Adani’s listed companies or their subsidiaries. At present, while SEBI’s investigation against Adani is progressing, the new report has once again created a crisis for Adani.
Disclaimer : This is not an investment/trading advice of any kind
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