We are all aware about the report published by professional short selling firm Hindenburg against Adani group. The said report has resulted in fall of share prices by more than 80% from recent highs. All Adani group shares have borne the brunt of this report. What this fall in share price has done, is that it has managed to dethrone Gautam Adani, Chairperson of the Adani group from top ten billionaires in the world from the position of 2nd rank. Is this a conspiracy against India or just another strategy in the market?
Well, from the looks of it, it may look like a strategy but actually it is deep hatred ingrained in the western society for a brown man getting into an elite club, of which, only white skinned had the monopoly. Adani was not only a member of the elite club, but he threatened to dethrone the number one.
Secondly, India is taking huge strides in becoming a developed nation from a so called third world country. This growth is not very well digested by the developed world. Huge amount of Foreign Direct Investments are on their way to India. India is likely to become the world’s manufacturing hub, replacing China. India has already taken over the UK as the 5th largest economy and is likely to be among top 3 in the next decade. This growth has been largely driven by Indian businesses like Adani group. Once one breaks the back of growth in businesses, the economy is automatically affected resulting in job losses, lower income and overall stagnation or downward movement of the GDP.
No doubt Adani group has debt, so do all the businesses. No business or country can effect growth without debt. If we look at the debt by countries in comparison to the GDP, we find that India is ranked 17th in overall debt with close to 20% debt to GDP ratio, whereas the US has close to 120% debt to GDP ratio while Singapore tops debt to GDP ratio among top 20 countries with a whopping 470% debt to GDP. When we look at individual companies we find that although Adani has debt, it is not the biggest debt company in India. Also, of the total debt owed by Adani around 25% comes from Indian banks and rest from overseas bonds and loans from foreign entities. Adani group is estimated to have a debt of around $ 30 billion, which is nothing compared to the top debt owner TOYOTA having close to $ 186 billion debt. Adani doesn’t feature in top 30 in the list. As far as Indian companies are concerned NTPC alone has almost the same debt as the entire Adani group. To add to that Adani Enterprises, the flagship company of the Adani group has been consistently clocking profits for last four quarters. YoY company went from loss to profit in Q3FY23.
Why single out Adani then? The answer lies in the growth of the company outside India. All of this started the day, the company acquired coal mines in Australia. And to add to it, the group acquired various ports and mines across the world from Sri Lanka to Israel. The question of whether the group has government backing or not does not arise here. If government backs Adani group, it is the duty of the government of the day to back any Indian business in growth and going global. No one has ever uttered a word when China backed its companies with low interest loans, subsidies and all other support and flooded the world with cheap Chinese products. Why should anyone cry foul if any Indian company is backed by its government.
Let us come to the old, opinionated, rich and dangerous George Soros. Soros is a degenerated rich man finding solace in someone else’s misery. He is that contemptuous person who made his fortune by selling his own ilk to the butchers of the Nazi forces. This wily old degenerate has the audacity to lecture us on democracy, which is thriving and prospering in India. We know what democracy is and how it works. A third rate scum like Soros has no business lecturing us on it. His failed attempts for a regime change in India has rattled the wily bastard. This is the reason he has chosen Adani shoulder to fire against India and Indian democracy.
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