One of India’s most distinguished and governing business tycoons Gautam Adani's massive conglomerate "The Adani Group", recently faced some severe accusations of stock manipulation by a U.S based financial research firm ‘Hindenburg’. The accusations were based on the conglomerate's earnings, which increased by $100 billion in a time frame of just three years with a drastic rise of an average 819% in stock prices.

A total of 88 questions were raised by Hindenburg based on their claim of two years of private investigation.The Adani Group replied to this with a tremendously detailed 413 page report. The group’s report claims that all these accusations are preposterous and are based on nothing but false assumptions. It also details that the alleged related parties and offshore companies have no connections to the conglomerate and the claims made by Hindenburg are nothing but misleading statements with no backing of evidence.

Here at 2iQ Research, our analysts and researchers have tried to unwrap this web of numerous transactions by digging financial statements as valiantly as possible. According to the statistics recorded in our databases, we have found out that the offshore companies have a particularly interesting relationship with the Adani Group, all of them are designated as ‘Promoter Groups’ (Insiders in U.S reference), but the report published discards the relations entirely. We have also tried to dig out all the possible information available and have come to the conclusion that the companies might be shell as there is no organizational hierarchy present in any of them. The shells have no transparent operational market, no company offerings and no designated employees. But the particular transactions executed by Mauritius-based companies all have this one trait in common, they all seem to be only buying and artificially inflating the conglomerate’s stocks and are not led by any directorial position holders; the same claim that was made by Hindenburg that offshore entities were used to inflate Adani group's revenues and manipulate stock prices.

We have designed an infographic consisting of the crux of all the intricate transactions performed, elaborating their purpose and stakes in the group.

Click on the image to zoom in.