Hindi NewsBusinessTingo Group Shares Fall As Hindenburg Research Called The Company A Scam
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Doji Mmbosi, founder of Tingo Group. Tingo operates a mobile technology and payments business primarily focused on farming and food processing businesses in Nigeria.
Shares of agri fintech company Tingo Group have seen a decline of about 50% after the report of American firm Hindenburg. The US based short seller has made serious allegations against the company and its founder Dozy Mmobuosi. Hindenburg questioned the financials of Tingo Group and called it a scam.
Tingo Group operates in Africa, Southeast Asia and the Middle East. It operates a mobile technology and payments business primarily focused on farming and food processing businesses in Nigeria. Mombosi is a Billionaire and regularly appears on news channels. He made headlines earlier this year when he tried to buy the soccer team Sheffield United.
Tingo Group founder Doji Mmbosi tried to buy the soccer team Sheffield United
What did the Hindenburg Report say?
Hindenburg found what he called “red flags” in the company’s accounts. There are many errors and typos in its financial statements. Hindenburg said, ‘Mombosi claims to have developed Nigeria’s first mobile payment app. We contacted the actual creator of the app, who called Mombosi’s claims of creating the app ‘absolutely false’.
As per the report, the company claimed that its mobile handset leasing, calls and data business generated revenue of $128 million last year. These services are provided through an agreement with Airtel in Nigeria. Hindenburg said the license type the company claimed did not exist until June 2023.
The Hindenburg report raised questions about Tingo’s financials and business operations. The company’s food unit, Tingo Foods, claimed to generate huge revenue despite not having any food processing facility of its own. The report added that there were no signs of progress except a billboard at the site of the proposed food processing unit.
Shares of Tingo Group fell by almost 50%
After the Hindenburg report was published, it fell from $2.55 to $1.32 on Tuesday. That is, its shares have fallen by 48.24% in a single day. After the report came, the market cap of Tingo Group came down to $ 400 million i.e. around Rs 3300 crore.
Tingo shares fell nearly 50% on Tuesday after the Hindenburg report was published.
Tingo Group called the report misleading
Tingo Group refuted Hindenburg’s claims, saying the report contained several factually incorrect and misleading statements. This appears to be a deliberate attempt to dilute the positives being done by Tingo Group in various markets around the world.
The Hindenburg Research report represents his own opinion. It is designed to profit from short selling. The company can confirm that Hindenburg Research did not attempt to reach the company to verify its allegations.
Hindenburg’s fourth target this year
Tingo is the fourth target of US-based short-seller Hindenburg. Hindenburg has previously targeted Adani Group, Jack Dorsey’s Block Inc and Carl Icahn’s flagship firm Icahn Enterprises. Nathan Anderson operates the Hindenburg.
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