ADANI GROUP CHAIRMAN GAUTAM ADANI SPEAKS DURING THE INAUGURATION OF THE 9TH VIBRANT GUJARAT GLOBAL SUMMIT IN GANDHINAGAR, INDIA, JAN. 18, 2019. AP.
India-based Adani Group lost $12B in market value after being shorted by U.S. investment research firm Hindenburg Research.
Hindenburg accused the Indian conglomerate of fraud and "brazen" market manipulation.
- Hindenburg published a report on Jan. 24 alleging that Gautam Adani, Asia's richest person, is "pulling the largest con in corporate history."
- The report alleges that companies owned by Adani have engaged in money laundering, corruption, and taxpayer theft.
- Hindenburg said that it has used non-Indian traded derivative instruments and U.S. traded bonds to take a short position on Adani's companies.
- The Adani Group described the allegations as "baseless" and a “malicious combination of selective misinformation.”
- Hindenburg published its report soon before Adani Enterprises expected to receive subscriptions for a major share sale intended to attract a wider investor network.
- Last year, the Adani Group, which owns 30% of India's port industry, became the third Indian conglomerate to reach a market capitalization of over $100B.
- Hindenburg Research is an investment research firm that specializes in short selling.
- The firm published a report in 2020 accusing electric vehicle and battery maker Nikola Corp of fraud, which led to its founder, Trevor Milton, resigning from his role as executive chairman.
