This presentation analyzes the vulnerability of Adani Group's capital structure to market news.

1. Adani and Hindenburg
A Case Study

2. 01
About Adani group
02
Major Operations of Adani
group
03 About Hindenburg Research
Organization
04 Analysis of Adani Group’s capital
structure on the grounds of its
vulnerability towards market news
Table of Content

3. Team Members
S u j a y R o y
Department Of
Management, NBU
Contact info:
e-
mail:roy8436@gmail.com
Phone: 86703-91526
S w e e k r i t i S h a r m a
Department Of
Management, NBU
Contact info:
E-mail:
sweekritisharma00@gma
il.com
Phone: 7676149138
S o r a v B a r u a
Department Of
Management, NBU
Contact info:
E-mail:
souravbarua68@gmail.c
om
Phone: 8617468979
S h e e t a l P a r a k h
Department Of
Management, NBU
Contact info:
E-mail:
sheetalparakh7@gm
ail.com
Phone: 7001406819
R a k s h a S e n u h a r
Department Of
Management, NBU
Contact info:
E-mail:
rakshasenuhar@gm
ail.com
Phone: 8116315841
R i t e s h C h e t t r i
Department Of
Management, NBU
Contact info:
E-mail:
20riteshchettri19@g
mail.com
Phone: 9686989807

4. The pie chart shows how
Adani Group's earnings are
divided among these seven
listed companies.
About
Adani Group is a multinational conglomerate that operates across various sectors such as
ports, logistics, agribusiness, power generation, and renewable energy. The group is
headquartered in India and has a global presence with operations in more than 50
countries.
Leadership : Gautam Adani, Rajesh Adani(Managing director), Dr. Priti Adani( Chairperson, Adani
foundation), Malay Mahadevia ( Whole time director of APSEZ and CEO of AAHL)
Industry : Conglomerate
Founded : 20th July; 34 years
ago
Founder : Gautam Adani
Headquarters: Ahmedabad, Gujrat,
India
Area served : Worldwide
Key people :Gautam Adani
(chairman)
Revenue : Rs. 230,000 crore(2021-
2022)
Net income : Rs. 18,534 crore(2021-
2022)
Number of employees: 23,000+(2023)

5. The group operates
several ports in India and
overseas, including
Mundra Port in Gujarat,
which is the largest
commercial port in the
country. It also provides
logistics services such as
freight forwarding,
customs clearance, and
warehousing.
Adani is one of the largest
private power generation
companies in India, with a
total installed capacity of
over 12,000 MW. The group
operates thermal power
plants, solar power plants,
and wind farms.
Adani operates in the
agribusiness sector
through its subsidiary,
Adani Wilmar, which is a
joint venture with
Singapore-based Wilmar
International. Adani
Wilmar is one of the
largest producers of
edible oils in India and
has a presence in several
other countries.
Adani operates several
mines in India, including
coal mines in the state of
Chhattisgarh and iron ore
mines in Karnataka.
Ports and
logistics
Power
generation
Agribusiness Mining Renewable
energy
Real
estate
The group has been
investing heavily in
renewable energy
and has a target of
achieving 25 GW
of renewable
energy capacity by
2025. Adani Green
Energy Limited, a
subsidiary of Adani
Group, is one of
the largest
renewable energy
companies in
India.
Adani also has a
presence in the real
estate sector through its
subsidiary Adani Realty,
which develops
residential, commercial,
and industrial
properties.
Major Operations of Adani Group

6. What is Hindenburg Research ?
The name is called Hindenburg Research as it is based on Hindenburg
tragedy when a German passenger airship caught fire, killing 35 people.
 "We view the Hindenburg as the epitome of a totally man-made, totally
avoidable disaster. Almost 100 people were loaded onto a balloon filled
with the most flammable element in the universe. This was despite dozens
of earlier hydrogen-based aircraft meeting with similar fates.
 "We look for similar man-made disasters floating around in the market and
aim to shed light on them before they lure in more unsuspecting victim,"

7. About the company
Type : Private
Founded: 2017, 6 years
ago
Founders : Nathan
Anderson
Some key points about their mission and approach:
1. To identify fraudulent companies and practices that may harm investors
2. To provide investors with in-depth research on companies suspected of fraud or
misrepresentation
3. To use investigative techniques, such as on-the-ground research and interviews, to uncover the
truth about a company
4. To communicate their findings through public reports and other means, to inform investors
and regulators
5. To hold companies and executives accountable for their actions, and to help prevent future
fraud and deception in the marketplace.

8. Track Record
Hindenburg Research has a track record of
exposing fraudulent companies and practices,
and their research reports have led to
significant market impact and regulatory
action. Some notable examples are Nikola
Corporation, Clover Health Investments,
DraftKings.
Share Price of Adani Group companies after
the Hindenburg Report publishing.

9. Analysis of Adani Groups’ capital structure
on the grounds of
its vulnerability towards market news.
•Capital structure refers to a company's
mix of capital—its debt and equity.
•Important ratios used to analyze
capital structure include the debt ratio,
the debt-to-equity ratio, and the long-
term debt to capitalization ratio.
 Debt-to-equity
ratio analysis

10. Net Debt / Ebitda Comparison
between
Q1 2022 and Q1 2023

11. The company's capital structure is a mix of
equity and debt financing, which can make
it vulnerable to market news and
fluctuations. On one hand, the company's
reliance on debt financing has allowed it to
quickly expand its operations, diversify its
portfolio, and capture market share.
However, it also exposes the company to
financial risks, such as rising interest rates,
credit downgrades, and changes in
investor sentiment.
Impact of
Market
News
Impac
t -44% drop only 19
trading session

12. Conclusion
 The recent controversy surrounding Hindenburg's report has
negatively affected Adani Group's market value and highlighted the
need for the company to strengthen its capital structure.
 The group's heavy reliance on debt financing, significant exposure to
foreign currency debt, and high debt to equity ratio may pose
challenges in servicing its debt obligations and make it vulnerable to
market volatility.
 To protect itself and maintain investor confidence, the group must
focus on reducing its debt levels and improving its cash flow position.
 The group could consider raising funds through equity financing,
divesting non-core assets, or restructuring its debt obligations .
 Moody's downgrade of Adani's credit ratings and reduction of the
weightings of some of the group's largest non-insider held shares by
major index providers are further indications of the challenges the
group faces .