BlackRock, the world’s largest investment manager, is one of more than 200 financial institutions exposed to $8 billion in securities in the Adani Group, owned by Indian billionaire Gautam Adani, which fell in the wake of fraud allegations over part of Hindenburg Research. The asset manager held about $104 million in notes from the Indian conglomerate, one of the largest holdings, according to data compiled by Bloomberg based on the latest market reports.
Last year, Adani became the second richest man in the world with a net worth of $147 billion. Today, he is no longer in the top ten after his fortune dropped by more than $57 billion after suspicions were exposed. The long list of funds held by the Adani Group shows how much demand there was to invest in the conglomerate before Hindenburg crashed its stocks and bonds.
US investment manager Lord Abbett & Co. The American Teachers Pension and Insurance Association, which provides insurance and financial services to academic, medical, research and government employees, listed properties in the Adani Group, valued at $101 million and $77 million, respectively. According to reports.
Understand the situation
Companies controlled by the Audani Group lost more than $108 billion in a week in one of the biggest sell-offs in Indian history. The collapse of the company’s accounts stems from a report by Hindenburg Research, an investment firm known for its short positions, which accused the group of engaging in a decades-long stock manipulation and accounting fraud scheme.
Hindenburg’s research spanned two years and found that seven companies in the conglomerate, India’s second-largest, were 85% overvalued and that corporate leverage (using resources beyond those available) posed a risk to those companies. Creditors According to the report, members of the Adani Group have in the past defaulted on obligations and financial obligations, based on information gathered from regulatory documents.
The Hindenburg also detailed a series of extraterritorial (offshore) organizations belonging to the Adani family in tax havens such as the Caribbean, Mauritius and the United Arab Emirates. Shell companies would have been used to facilitate the transfer of funds from companies that are part of the conglomerate.
In response, Adani Group alleged that the research firm’s report was malicious, spread misinformation, and was motivated by special interests. “This is fraught with conflicts of interest and is only aimed at creating a fake stock market to allow the Hindenburg Company, the renowned short seller, to make huge financial gains through illicit means at the expense of countless investors,” it says.