What is the Hindenburg Research and what did it report on the Adani Group?
The Hindenburg Research released on January 24 made some serious allegations about the Adani group. The Adani Group broke its silence over the issue by calling the research a “malicious combination of selective misinformation.” The group also made it clear that even the “highest courts” of the country.
What did the Hindenburg Research say about the Adani Group?
On Wednesday, Hindenburg Research said it held short positions in the Adani Group. In response, the Adani Group says that the statements in the report were made with a mala fide intention to hamper the reputation of Adani Enterprises.
The Hindenburg report stated that the Us-based firm holds short positions in the Adani Group via US-traded bonds and non-Indian-traded derivatives. The Research disclosed its short position and accused the Adani Group of engaging in a brazen stock manipulation and accounting fraud scheme over the course of decades.”
The Hindenburg also said that the company had “substantial debt”. This debt has landed the complete group on a “precarious financial footing.”
As a result of the report, the stocks of the Adani Group have fallen drastically.
What is the Adani Group planning to do now?
Ahead of Hindenburg Research throwing serious allegations on the Adani Group, the latter plans to file a suit against the US-based investment research firm.
As per the Adani Group, the research was “malafide and mischievous”, which eventually dropped company shares on Wednesday.
In a statement, the Adani Group expressed that, "We are evaluating the relevant provisions under US and Indian laws for remedial and punitive action against Hindenburg Research."
How did the Hindenburg Research affect the Adani Group?
As per the Adani Group, the report by the Hindenburg Research has been “maliciously mischievous, and unresearched”, and had an adverse effect on the Indian firm’s investors and shareholders.
Jatin Jalundhwala, Adani Group Head, Legal, expressed that, “The volatility in Indian stock markets created by the report is of great concern and has led to unwanted anguish for Indian citizens. Clearly, the report and its unsubstantiated contents were designed to have a deleterious effect on the share values of Adani Group companies as Hindenburg Research, by their own admission, is positioned to benefit from a slide in Adani shares.”
"We are deeply disturbed by this intentional and reckless attempt by a foreign entity to mislead the investor community and the general public, undermine the goodwill and reputation of the Adani Group and its leaders, and sabotage the FPO (Follow-on Public Offering) from Adani Enterprises," stated the Adani Group.
What is the Hindenburg Research?
The Hindenburg is a US-based Research founded by Nate Anderson. It specializes in forensic accounting. The Research is popular for its critical findings on EVs. As said on its website, the company works “with a historical focus on equity, credit, and derivatives analysis”.
When one looks at the company’s website, one will find that it mentions its “track record” and mentions a list of cases. The cases begin with their report “Nikola: How to Parlay An Ocean of Lies Into a Partnership With the Largest Auto OEM in America” in September 2020.
People behind the Hindenburg Research
Nathan (Nate) Anderson, 38, founded Hindenburg Research LLC. The man studied international business management at the University of Connecticut. He then lived in Jerusalem before moving to the United States. After returning to the U.S. He worked at a consulting job with FactSet, a financial software company. Then, he started working at a broker-dealer firm in New York and Washington DC.
Next, Nate Anderson started working with Harry Markopolos, after which he founded the Hindenburg Research.