With the announcement by founder Nate Anderson that Hindenburg Research is winding up its operations, this report serves as a reflection—an obituary of sorts—on the firm’s impactful yet polarizing journey. Over seven years, Hindenburg transformed the landscape of activist short-selling, exposing corporate misconduct and reshaping market narratives.
The Adani Group faces fresh allegations of bribery and fraud, adding to a tumultuous year marked by accusations from Hindenburg Research and global scrutiny. Despite the challenges, the share prices of Adani Group companies show resilience. Big investors announced their support. However, things are not looking too good for the Adani Group. Investors should be very cautious in view of the allegations.
Indian entrepreneur Gautam Adani was considered the second richest Indian. A few years ago, his net worth was estimated at up to $90 billion. In 2023, US short-seller Hindenburg Research accused Adani of stock manipulation and fraud. On Nov 20, the U.S. DOJ and the SEC announced legal actions against Adani. The shares of his Adani Group imploded and massively reduced his net worth.
The central allegation of the Hindenburg Research report against the Indian Adani Group is that the listed shares of the group's companies were manipulated through offshore entities controlled by Gautam Adani and his family. Cyprus-based entity New Leaina Investments Ltd is allegedly at the center of this stock manipulation scheme. Until June-September 2021, this investment company owned over U.S. $420 million in Adani Green Energy shares, accounting for 95% of its portfolio.
On 24 January 2023, Hindenburg Research revealed the findings of a 2-year investigation and presented evidence that the Indian conglomerate Adani Group with a stock market valuation of around $218 billion, has engaged in a stock manipulation and accounting fraud scheme over decades. Gautam Adani, founder and chairman of the Adani Group, allegedly added over $100 billion in net worth in the past three years, mainly through stock price appreciation in the group’s seven key listed companies.