Hindenburg responds to Adani Group’s 413-page report, Fraud cannot be obfuscated by nationalism

Hindenburg responds to Adani Group’s 413-page report, Fraud
cannot be obfuscated by nationalism
Hindenburg responds to Adani Group’s 413-page report, Fraud cannot be obfuscated by nationalism

On Monday (January 30), Hindenburg Research responded to Adani Group’s 413-page rebuttal to research detailing numerous areas of probable fraud by asserting that “fraud cannot be hidden by nationalism.”

Hindenburg responded after Gautam Adani’s organisation linked the unfavourable allegations provided by the US short seller to a “attack planned against India.”

The US-based business retaliated by stating that Adani had disregarded every important accusation they had made in their extensive response and that “The Adani Group inevitably tried to redirect the focus away from basic issues and instead promoted a nationalist narrative.”

The Adani Group “attempted to link [its] quick ascent and the affluence of its Chairman, Gautam Adani, with the success of India itself,” according to Hindenburg Research.

“We don’t agree. To be clear, we think India is an exciting developing superpower with a dynamic democracy. The Adani Group, which has covered itself in the Indian flag while methodically robbing the country, is also a factor in our belief that India’s potential is being held back, according to the US company.

We also believe that fraud is fraud, even if it is committed by one of the richest people on earth, said the statement.


The company led by India’s richest man, Gautam Adani, compared the devastating claims made by short seller Hindenburg Research to a “planned attack” on India, its institutions, and its economic success story on Sunday, asserting the claims are “nothing but a fraud.”

In a 413-page response, Adani Group claimed that the research was driven by “an ulterior motive” to “create a phoney market” so that the US company could make money.

“This is not merely an unjustified attack on any one company, but also a deliberate attack on India, the independence, integrity, and excellence of Indian institutions, as well as the growth and aspirations of the nation,” said the statement.

Adani Group claims that 65 of the 88 points raised by Hindenburg are connected to problems that Adani portfolio companies have adequately disclosed. In contrast to the Adani portfolio companies, 18 of the remaining 23 queries are about public shareholders and third parties, and the final 5 are spurious accusations based on fraudulent data.

A two-year study, according to a report issued on Wednesday by activist short seller Hindenburg Research, revealed that the Adani Group had “engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades.” The business first became well-known for its attacks on Nikola and Lordstown Motors, two producers of electric vehicles.

The Adani Group lost more than USD 50 billion in market value in just two trading sessions as a result of the report by the tiny New York business that specialises in short selling, and Adani himself lost more than USD 20 billion, or almost one-fifth of his total wealth.

Gautam Adani slips to 7th spot in billionaire list

The drop in Adani Group shares last week, following a negative report on the company by US-based short seller Hindenburg Research, has driven billionaire founder Gautam Adani to seventh position from third in the Bloomberg Billionaires Index.

So far this year, the corporate tycoon has lost approximately $27 billion of his personal wealth. According to the Bloomberg Billionaires Index, Adani’s wealth decreased by $6 billion on Wednesday and another $20.8 billion on Friday, totaling $92.7 billion.

With a net worth of $147 billion in September 2022, Adani has surpassed Jeff Bezos, the founder of Amazon, to claim the title of second-richest person in the world. With net worths of $167 billion and $126 billion, Elon Musk and Jeff Bezos are ranked second and third in the index, respectively, while Bernard Arnault of LVMH continues to hold the top spot.

Bill Gates, the founder of Microsoft, is currently listed as the fourth richest person with a net worth of $112 billion, while Berkshire Hathaway’s Warren Buffett is the fifth richest with a net worth of $108 billion. With a net worth of $101 billion, Oracle’s Larry Ellison ranks sixth.

Mukesh Ambani, chairman of Reliance Industries NSE 0.96%, is ranked 13th on the wealthy list with an estimated net worth of $81.3 billion, despite having lost $5.77 billion of wealth since the start of this year. The market value of all group firms fell by ‘4.2 lakh crore, or $51 billion, in this time due to the sell-off in Adani Group shares on Wednesday and Friday.

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