Hindenburg Research published a shocking blistering report accusing Gautam Adani’s business as fraud. This led to the recent value crash of the company for as much as $50 billion. Responding to Hindenburg Research, Adani denied the allegations by saying that it is both baseless and malicious. Previously, Hindenburg published an investigation on Adani’s conglomerate. They accused the company of brazen stock manipulation and accounting fraud for decades. The research firm argued that they had taken short positions in the companies. They have been expecting to benefit from a drop in value.
Those companies’ shares plunged during India’s stock market opening, while in the last few years they surged 500%. On Friday shares of Adani Transmission decreased 20% each. These are encountered by Adani Total Gas and Adani Green Energy. Meanwhile, Adani Enterprises’ shares plunged 18%, the conglomerate’s flagship company. Thus, on Friday, they suffered a big loss for almost $39 billion in market value. However, the Bloomberg Billionaires Index still mentioned that Adani is the richest man in Asia. His personal fortune alone is worth $113 billion. This is actually $30 billion higher than his fellow Indian entrepreneur Mukesh Ambani. The gap could be lesser due to the recent crash in market value.
In its report, Hindenburg would call the legal action as meritless; they fully stood by the report. The short seller spoke on Twitter that if the firm is serious, it should also file suit in the US where the Hindenburg operates. In the legal process, Hindenburg has prepared all the necessary documents. In this case, Hindenburg is actually not the only one mentioning Adani’s finances.
