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.
Adani Group lost more than $133 billion in market value after the Hindenburg Research. They regained some ground early this week but are still far from their “before level.” The Adani Group and Gautam Adani have already filed lawsuits against Hindenburg Research. These lawsuits are part of those short-seller plays that are “nothing for sissies.“
Hindenburg Research is apparently involved in short-seller aktvitäten and has an interest in the shares of Adani Group companies moving south. Similar to how Fraser Perring and his notorious Zatarra Reports targeted Wirecard in 2016 and ultimately finished them off in 2020 with their bankruptcy. Perring succeeded and made a lot of money as a Wirecard short-seller.
Founded by the US national Nate Anderson, CFA, CAIA, Hindenburg Research specializes in forensic financial research and has a remarkable track record in exposing questionable activities of public-listed companies.
According to Hindenburg Research, the listed companies of the Adani Group have spiked an average of 819% over the last three years. The researchers spoke with dozens of individuals, including former senior executives of the Adani Group, reviewed thousands of documents, and conducted diligence site visits in almost half a dozen countries. Allegedly, the seven key listed companies have an 85% downside purely on a fundamental basis owing to sky-high valuations. A new short-seller battle started.
The Adani Group allegedly has been the target of government fraud investigations regarding money laundering, theft of taxpayer funds, and corruption, totaling an estimated U.S. $17 billion. Adani family members run the group via offshore shell entities in tax-haven jurisdictions like Mauritius, the UAE, Caribbean Islands, and Cyprus.
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