Hindenburg Research: Wednesday turned out to be the worst day for Gautam Adani, the richest man in India and the third richest man in the world. When the market reopened on Friday, Gautam Adani’s shares fell again heavily.
On Wednesday alone, Gautam Adani lost about $7 billion. They also suffer huge losses Friday fall. The reason for this decline is a report published by the American research group Hindenburg Research. In this report, many serious allegations are made against Gautam Adani.
What Is Hindenburg Research?
Hindenburg Research is an American investment company, which was started by a businessman named Nathan Anderson. It was established in 2017. The company claims that it is an expert in forensic financial research and has decades of experience.
According to the company’s website, this company researches based on information received from unusual sources, which is very difficult to find. Before starting this company, he also worked with Harry Markopolos, who exposed Bernie Madoff’s Ponzi scheme.
Hindenburg Research has issued such reports on many companies in the past as well. Due to these reports, there was a huge fall in the shares of those companies. In 2020, this company also sold its stake in American truck maker Nikola and social media company Twitter.
Due to this, there was a huge decline in the shares of both those companies. Nikola was an electric vehicle manufacturing company that duped investors by telling them about their new vehicles when in reality they did not have any vehicles.
Since 2016, Hindenburg Research has released dozens of such reports, in which it has disclosed one way or the other, due to which the shares of many companies have been badly broken. This research firm has also issued research reports against WINS Finance, China Metal Resources Utilization, HF Foods, and Riot Blockchain.
Why The Name Hindenburg Research?
There is a special reason behind the name of this company. It was named Hindenburg Research with a special purpose. According to the information given on the company’s website, it is based on a disaster.
The company believes that disaster can be avoided. On May 6, 1937, a Hindenburg Airlines plane carrying about 100 people from America was the victim of an accident in Manchester, New Jersey. About 37 people died in this.
Under this, about 100 people were seated in an airship filled with hydrogen, which is a very inflammable gas. This was also done when dozens of similar minor accidents had happened earlier as well.
What Are The Allegations Against Adani Group?
Adani Group is accused that the company has manipulated the price of shares and committing accounting fraud. It has been said in the report that there is a lot of debt on Adani Group, due to which there is a situation of doubt on their companies.
There is also an allegation that Adani Group has misused countries called tax havens and manipulated the prices of shares. This research has been published under the name ‘Adani Group.
How the World’s Third Richest Man is Pulling the Largest Cone in Corporate History. It was released on 27th January just 2 days before the FPO of Adani Enterprises. Due to this, FPOs worth about Rs 20,000 crore is facing a crisis.
According to the report, Adani Group has worked to save tax by forming many companies abroad. There are many anonymous companies in tax haven countries like Mauritius and the Caribbean islands, which have stakes in Adani Group companies.
There is also an allegation that Adani’s listed companies are heavily indebted, which has put the entire group in an ‘untenable financial position’. Due to the high valuation, the price of the company’s shares is being told as high as 85 percent.
This research firm claims that it has made this report after rigorous research for about 2 years. To prepare this, the company talked to former Adani Group officials and some other people and also searched many documents.
Adani Group Will File A Case Against The Research Firm
Adani Group’s Legal Head Jatin Jalundhwala has said that all the allegations leveled against the company are baseless. It has also been said that the research firm released this report during the FPO of Adani Enterprises so that the shares of the company can be harmed.
Now Adani Group has decided that it will file a case against Hindenburg Research. At the same time, Hindenburg has also challenged the Adani Group.
What Adani Group said?
Adani Group CFO Jugshinder Singh has said that neither the company was contacted nor any attempt was made to verify the facts before publishing the report published by Hindenburg Research on 24 January 2023.
Many wrong things have been said in this report, which have no basis. The allegations leveled against the Adani group in this report have already been rejected by the Supreme Court of India. According to the company, this report is an attempt to tarnish the image of the Adani Group.
Through this report, an attempt is being made to harm the upcoming FPO of the company. Please tell us that the FPO of Adani Enterprises will be the biggest in India so far. According to the company, investors have always trusted Adani Group.
The basis of his confidence is the detailed analysis done by the financial experts and the report made after that. Our conscious investors are not swayed by any one-sided report. Adani Group has always followed the law and works accordingly. This company also fully follows all the corporate and governance standards.
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