Adani Group stocks jumped over 5% on Thursday after Hindenburg Research, the short-seller behind the $100 billion Adani Group shares sell-off, is shutting down.
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Among the Adani Group stocks, Adani Enterprises, Adani Green Energy and Adani Power shares rallied 5.5% each, while Adani Ports & SEZ, Adani Energy Solutions and Adani Total Gas shares gained over 4% each.
Adani Wilmar shares were trading flat. Ambuja Cement, ACC and NDTV were alos trading up to 4% higher each in early trade on January 16.
Hindenburg Research “Disbanded”
The US-based Hindenburg Research is being “disbanded”, its founder Nathan Anderson said in a note.
“As I’ve shared with family, friends and our team since late last year, I have made the decision to disband Hindenburg Research,” Anderson wrote in a note.
Hindenburg Research published reports against the Indian conglomerate in 2023. The short-seller accused Adani Group of using offshore tax havens improperly, a charge which the company denied.
In November, US prosecutors announced that Adani Group Chairman Gautam Adani had been indicted in New York over his role in an alleged multibillion-dollar bribery and fraud scheme.
Hindenburg Research’s closure comes days after a Republican Congressman requested the Department of Justice to preserve documents related to Adani investigations.
Anderson, who started Hindenburg in 2017, said the plan was to wind up after “we finished the pipeline of ideas we were working on.” He cited the toll of the “rather intense, and at times, all-encompassing” nature of the work as the reason for his decision, in a website post published on Wednesday.
“We shook some empires that we felt needed shaking,” Anderson wrote, adding nearly 100 people had been charged by regulators “at least in part” because of Hindenburg’s work.
Anderson said in his post that the intensity and focus of his work came at a cost, and he was missing “a lot of the rest of the world and the people I care about.”
“I now view Hindenburg as a chapter in my life, not a central thing that defines me,” Anderson wrote.
Timeline of the Adani-Hindenburg Saga
January 2023: Hindenburg Research released a report accusing the Adani Group of stock manipulation, accounting fraud, and money laundering through offshore shell companies in tax havens. The Adani Group denied these allegations.
The report led to massive beating in Adani Group stocks that wiped out a huge chunk of its market value. Later, Adani group stocks made most of the stock market losses.
February 2023: Adani Enterprises called off its ₹20,000-crore follow-on public offer (FPO), a day after the company closed the offer successfully.
March 2023: The Supreme Court of India ordered the setting up of a committee to probe the crash in Adani Group shares triggered by Hindenburg’s fraud allegations.
May 2023: The Supreme Court panel submits a report which finds “no evident pattern of manipulation” in Adani companies and there was no regulatory failure.
August 2023: SEBI informed the Supreme Court that 22 of its 24 investigations into the Adani-Hindenburg matter are complete, while two are interim. The interim probes involved 13 overseas Adani entities. SEBI is awaiting information from external agencies and has sought details from five countries on FPIs.
January 2024: Supreme Court granted SEBI three months to complete its probe into Hindenburg’s allegations against the Adani Group and denied transferring the case to the CBI, offering relief to the conglomerate.
July 2024: Hindenburg revealed a SEBI notice accusing them of regulatory violations and named Kotak Bank for its role in the dealings.
August 2024: Hindenburg targeted SEBI Chairperson Madhabi Puri Buch, alleging a conflict of interest. The report claimed that Buch and her husband invested in offshore funds linked to Adani Group entities, raising concerns about SEBI’s reluctance to act on the January 2023 report. Both denied the claims.
Adani Energy Solutions shares rose 1.13% to ₹780.20, Adani Wilmar share price ended 2.45% higher at ₹273.50, while Adani Total Gas stock fell 1.16% to ₹661.45.
