Adani

A prominent short-seller has released a scathing research report on the conglomerate of Asia's richest person, sending shares plunging.

It was instrumental in bringing down the founder of Nikola, which was accused by Hindenburg in 2020 of being built on “dozens of lies”. No charges have been announced from the investigation. The shares on average were down 26 per cent six months later. Hindenburg said it’s short Adani securities via derivatives and US-traded bonds. Hindenburg’s Twitter account has more than 259,000 followers, while Anderson’s personal handle has another 26,500. Hindenburg is best known for its critical reports on companies in the electric vehicle industry.

Adani – the company behind Australia's most controversial mine – is facing a stock market bloodbath after it was accused of pulling off “the largest con in ...

The Group has always been in compliance with all laws, regardless of jurisdiction, and maintains the highest standards of corporate governance.” “The timing of the report’s publication clearly betrays a brazen, mala fide intention to undermine the Adani Group’s reputation with the principal objective of damaging the upcoming Follow-on Public Offering from Adani Enterprises, the biggest FPO ever in India. “It’s a stranded asset … “We are shocked that Hindenburg Research has published a report on 24 January 2023 without making any attempt to contact us or verify the factual matrix. Our informed and knowledgeable investors are not influenced by one-sided, motivated and unsubstantiated reports with vested interests. Adani – the company behind Australia’s most controversial mine – is facing a stock market bloodbath after it was accused of pulling off “the largest con in corporate history”.

Shares of Adani Group firms slid after short seller Hindenburg Research claimed Adani engaged in brazen stock manipulation. Now for the first time since ...

[alleged](https://hindenburgresearch.com/nikola/) then-Chairman Trevor Milton misled investors about the company's business. With a fortune of $160 billion, Tesla CEO Elon Musk is the world's second-richest person. The world's richest person remains luxury goods mogul Bernard Arnault, the chairman and CEO of Louis Vuitton parent LVMH. Over the past years, short-seller Hindenburg has helped spark regulatory investigations into multiple multi-billion-dollar companies. [Adani Group Shares Slide After Hindenburg Alleges ‘Largest Con In Corporate History’](https://www.forbes.com/sites/siladityaray/2023/01/25/adani-group-shares-slide-after-hindenburg-alleges-largest-con-in-corporate-history/) (Forbes) [India’s Gautam Adani Is Now Richest Asian Billionaire Ever As Fortune Jumps Past $100 Billion](https://www.forbes.com/sites/jemimamcevoy/2022/04/11/indias-gautam-adani-is-now-richest-asian-billionaire-ever-as-fortune-jumps-past-100-billion/) (Forbes) [Gautam Adani](https://www.forbes.com/profile/gautam-adani-1/), chairman of the sprawling Indian conglomerate Adani Group, ceded the title of the world's third-richest person to Amazon founder Jeff Bezos on Wednesday, after a famed short-seller released a scathing report accusing Adani of an alleged decades-long scheme to manipulate the firm's stock price—claims an Adani executive has vehemently denied.

Short-seller Hindenburg Research disclosed on Wednesday short positions in India's Adani Group, citing potential stock manipulation and accounting fraud in ...

The company agreed in 2021 to [pay $125 million](/business/nikola-corp-agrees-pay-125-mln-settle-sec-charges-defrauding-investors-2021-12-21/) to settle with the U.S. Last year, it took a short and then a long position in Twitter Inc. Nikola debuted as a listed company in June 2020 and its valuation reached $34 billion some days after, surpassing Ford Motor [(F.N)](https://www.reuters.com/companies/F.N). After finding potential wrongdoings, Hindenburg usually publishes a report explaining the case and bets against the target company, hoping to make a profit. The allegations sent bonds and shares in the conglomerate's companies down. Founded in 2017 by Nathan Anderson, Hindenburg Research is a forensic financial research firm which analyses equity, credit and derivatives.

Mining magnate Gautam Adani's net worth drops by $8 billion dollars after an investment firm accuses him of "brazen stock manipulation and accounting ...

"We believe the Adani Group has been able to operate a large, flagrant fraud in broad daylight in large part because investors, journalists, citizens and even politicians have been afraid to speak out for fear of reprisal," the report said. Hindenburg Research published a report alleging the Adani Group had "engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades". Hindenburg said it had identified numerous instances of undisclosed related-party transactions and earnings manipulation "to maintain the appearance of financial health and solvency" of listed Adani companies.

A short seller with a nose for fraud is taking aim at Gautam Adani, one of the world's richest people. Cue the fireworks.

Over the past few years, Nathan Anderson has made his name with analysis that sends stocks sinking. Now he is going after his biggest target yet.

“There’s still plenty of fraud out there,” Anderson told the New York Times last October. He later worked for a financial analytics company before taking a job checking out potential deals for the investment firms of wealthy families. Hindenburg hasn’t been accused of wrongdoing, but some of its peers have been sounding the retreat. During college, he lived for a time in Israel, working as a paramedic while taking classes at Hebrew University. Short sellers — and the controversies that often surround them — have been around for as long as there have been stocks. And yet Anderson has managed to make a mark lately. The Hindenburg report hit just as Adani Enterprises was opening a $US2.5 billion share sale for investors. Little Hindenburg has never swung at a company as big and powerful as Adani Group. Even in Manhattan’s financial circles, he’s hardly a big name. “If there’s ever a time that I feel that most of the corporate fraud in America has been eliminated, then I’ll probably announce that I’ll go grow tomatoes, or something.”Nathan Anderson in an interview with the New York Times in October. Hindenburg hopes that’s just the beginning. It’s difficult to overstate just how lopsided this fight is.

Hindenburg Research accusations denied by Adani as 'baseless' while activist investor claims legal action will reveal accounting fraud.

The billionaire US investor Bill Ackman said in a tweet he found the Hindenburg report to be “highly credible and extremely well researched”. It has accused Adani of loading companies with debt that puts the entire group on a “precarious financial footing”. Those same companies fell further in early trading on Friday, after Indian markets were shut on Thursday, creating selling momentum. The statement said Adani was disturbed by the “intentional and reckless attempt” of a foreign entity to mislead investors and the general public and sabotage the public offering. Adani has threatened to seek “remedial and punitive” action against Hindenburg over what it said was a “maliciously mischievous, unresearched report”. Hindenburg said in a statement that Adani had not responded to any of the substantive issues raised in its report that accused the company of engaging in a “brazen stock manipulation and accounting fraud scheme”.

Indian energy giant Adani said all of its Australian operations complied with the law, as the company faces fraud claims from short-sellers.

The loss had eased back to 5.5 per cent later in the day. (Hindenburg has openly admitted it has taken a bet on the Indian company’s share price falling.) A key focus of the report was three $100 million-plus transactions relating to the Carmichael project and associated infrastructure. Connect with Mark on [[email protected]](mailto:[email protected]) The Bravus spokeswoman said the Hindenburg Research report - which claimed Adani was involved in the “biggest con in corporate history” - omitted the fact Mr Vora and Adani Enterprises were cleared by Indian authorities and the Supreme Court in 2017 of allegations surrounding the export of diamonds. But Adani’s Australian arm, Bravus, said the three transactions – $147 million from the privately owned Carmichael Rail to buy assets from Adani Mining; a $100 million line of credit from Adani Global to Carmichael Rail to pay its debts and $100 million security deposit from an Adani private family trust in the Caribbean to use its North Queensland Export Terminal – were all above board.

Global investment banks have cashed in on the Adani Group's voracious appetite for debt. Now their client is accused of pulling off 'the largest con in ...

“Hopefully these significant allegations will finally help all banks wake up to the risks of financing Adani.” Wall Street only began to really warm up to Adanis when he sought financing for Adani Green Energy, the conglomerate’s renewable energy subsidiary, according to Tim Buckley, a former investment banker at Citigroup and director at Australia-based Climate Energy Finance, who has been studying the Adani Group for over a decade. That offshore holding effectively allowed Adani Green to skirt Indian regulations that require listed companies to maintain a non-promoter public float of at least 25%, alleges Hindenburg. [report](https://hindenburgresearch.com/?p=2376), which alleges that the Adani Group and its principals have engaged in a years-long scheme of fraud and stock market manipulation. In recent years however, U.S and European-based investment banks have stepped up to help the Adani Group raise billions of dollars through equity sales, refinancings and U.S. These figures do not include the Adani Group’s debt issued in Rupees and other currencies. “Banks are willing to take a long-term view as these are much required assets for the country with assured returns," K. Hindenburg homed in on several loans between Adani entities, including a $253 million loan from a Mauritius-based shell company – which appears to be controlled by Guatam Adani’s brother, Vinod Adani – to a private Adani-owned entity, which then lent $138 million to Adani Enterprises, a publicly traded company. In addition to the Adani Group’s “relationship” banks, J.P. Founded in the 1980s as a commodities trading firm, the Adani Group has grown into a $23 billion (annual sales) conglomerate with seven publicly-traded firms involved in energy, industrial and logistics businesses across India. The conglomerate’s focus on real infrastructure projects – with their reliable cash flows – were part of the draw. One of these companies, Adani Ports & Special Economic Zone - which receives preferential tax treatments - was responsible for half the debt raised.