Comments by "" (@kallachi729) on "Market has won: For Adani to decide whether he will lose or not" video.

  1. Yes, a real test to capitalism in India. Or again, is it? A brief take on its effect on macroeconomy of India… , very briefly, in this case of Adani group of Companies, the major issue raised in the Hindenburg report is the offshore Shell companies (owned by the family, hence violating related party transactions dictate) used for round tripping for inflating the stock prices of group companies to raise capital by pledging the group companies’ thus overvalued securities. Though not correct, yet not new to Indian industries! It is pertinent to note here in this case, that the money so raised has been invested in visible and tangible assets (Ports and cash generating companies etc.) in the country. Thus, the assets of the group exceed loan liabilities with enough cashflow in the group and ability to service the debts in the near term, (3-4 years) as per major lenders in the country. Ports, Power, Cement, Green energy etc. are industries unlikely to fail with potential to continually generate cash. I do not foresee any short term or long-term danger to the Indian economy from this event – gains and losses in the stock market notwithstanding. Yes, the ability to raise fresh capital by the group will be dented and there will be scrutiny and some possible investigations. Tailpiece: My observations are only on the impact on Indian economy and NOT on whether any political party has benefitted (we are in a DEMOCRACY) or on any possible violations by the Group etc. which will reveal itself. Another important point to note is that the aim of Hindenburg is obviously to make money by short selling (That is what this company does for a living) and not “help” Indian economy in any way.
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