The Hindenburg effect: Is it a storm that will pass or is a shake-up on the cards? | In Focus podcast
In Focus by The Hindu
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What Is the Modus Operandi of the Adani Group?
According to Hindenburg, the way they explain this is that you basically as far as Indian laws are concerned, 25% of the market cap has to be floated. What seems to be happening here is that in order to reach to this 25%, what you are doing is that you are parking some shares in a sort of a shell company and that shell companies is in the family's name but it is shown as some other independent company. All the shell companies are registered somewhere else, not just in India. So if one is including all of that, including all these as per Hindenburg report, then it is not Adani's most companies are not meeting the public flood criteria of 25%.
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