Hindenburg report wiped billions of dollars of Adani Group

27/01/2023

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Hindenburg report wiped billions of dollars of Adani Group

The US investor and research firm ‘Hindenburg Research’ claiming the “biggest con in corporate history” to Indian conglomerate Adani Group over daring the company to sue.

Hindenburg Research reported that the company is specialized in forensic financial research. It has experience in the investment management industry spans decades, with a historical focus on equity, credit, and derivatives analysis.

When the company uses fundamental analysis to assist their investment decision-making, they believe the most impactful research results from uncovering hard-to-find information from atypical sources.

Researchers from Hindenburg had analyzed the complicated maze of transactions undertaken by many of the listed Adani Group firms.

Crashed shares of Adani Group:

Hindenburg Research’s report has already erased billions of dollars of value from the sprawling empire of Gautam Adani, the world’s third richest man, and drawn in the contentious Carmichael coal and rail project in Queensland.

Hindenburg stated that that Adani has not yet 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”.

Opposition demanded investigation over Adani issue:

Indian National Congress has called for detailed investigation over this issue from SEBI and RBI.

Effect in Stock Market:

After the report released investor wealth worth around Rs 1 lakh crore was eroded and the selling pressure in stocks of Adani Group companies have been increased on the second trading session on Friday and lost up to 20%.