The long-standing conflict between Hindenburg Research and the Adani Group has sparked significant media attention. The Opposition uses Hindenburg, a UD-based short seller, as a weapon to blacken both the Adani Group and the BJP government! The latest claims regarding frozen Swiss bank accounts linked to Adani are sinking Adani shares in the stock market once more.
Despite these allegations, investigations by Indian authorities and SEBI have found no evidence of wrongdoing on the part of the Adani Group. The conflict has raised critical questions about the intentions behind Hindenburg’s reports and its fixation on Adani.
Latest Allegations By Hindenburg Research and Adani’s Denials
Swiss authorities have frozen more than $310 million in funds across multiple Swiss bank accounts as part of a money laundering and securities forgery investigation into Adani, dating back as early as 2021.
Prosecutors detailed how an Adani frontman invested in opaque…
— Hindenburg Research (@HindenburgRes) September 12, 2024
In its latest attack, Hindenburg Research claimed that Swiss authorities froze over $310 million in multiple Swiss bank accounts tied to certain entities. Allegedly, they are linked to the Adani Group. According to the Hindenburg Research Group, these accounts were part of an investigation dating back to 2021. They explore the use of offshore tax havens like the British Virgin Islands, Mauritius, and Bermuda to hold Adani stocks.
In response, the Adani Group categorically denied these allegations, calling them “baseless” and “preposterous.”
“Baseless, Irrational, Absurd Allegations”: Adani Group On Swiss Media Report pic.twitter.com/utyl2IzGnx
— NDTV (@ndtv) September 12, 2024
The Adani Group has accused Hindenburg Research of attempting to tarnish its reputation. Additionally, they accuse Hindenburg of destabilizing Adani stock prices through unfounded claims. The Adani Group maintains that no accounts linked to their group were frozen. And they claim these allegations were merely another attempt by Hindenburg Research to manipulate the market at the call of its Deep State Masters.
Timeline of Events in the Adani-Hindenburg War Of Allegations:
January 24, 2023 – Hindenburg Report Released
- Hindenburg Research publishes a damning report accusing the Adani Group of stock manipulation and accounting fraud. It claims that the group uses a web of offshore shell companies to inflate stock prices.
- Additionally, the report claims that Adani had engaged in these practices for decades and called it the “largest con in corporate history.”
- Hindenburg Research also revealed that it held short positions in Adani’s listed companies through derivatives and other financial instruments.
January 25, 2023 – Adani Group’s Initial Response
- The Adani Group immediately dismisses the Hindenburg report as “maliciously mischievous” and “unresearched.”
- Thereafter, Adani’s legal team hinted at possible legal action against Hindenburg in U.S. and Indian courts. However, no lawsuit has been filed to date.
January 27-29, 2023 – Adani’s Stock Market Losses
- Following the release of the report and recirculation of its unsubstantiated claims, Adani Group’s market capitalization plunges. The drop in Adani shares wipes out tens of billions of dollars.
- Adani Enterprises’ Follow-On Public Offering (FPO) was put on hold. This FPO aimed to raise $2.5 billion. However, Adani placed the FPO on the back burner due to a rise in investor concerns and a drop in stock price below the offer price.
January 29, 2023 – Adani Group’s 413-page Rebuttal
- Adani Group issued a detailed 413-page rebuttal, categorically rejecting Hindenburg’s allegations.
- The company claimed that the report was aimed at damaging not just the company’s image but also that of India. Additionally, it questioned the timing of its release just ahead of the FPO which would have changed the game for the conglomerate.
- Finally, the rebuttal highlighted that Hindenburg Research made profits from shorting selling Adani stocks after publishing its unverified claims.
January 30, 2023 – Hindenburg’s Response
- Hindenburg Research responded by stating that Adani’s rebuttal fails to address most of the critical issues raised in its report.
- The short-seller stood by its allegations and called Adani’s response “bloated and largely irrelevant.”
- Hindenburg clarified that it made only $31,000 by shorting Adani shares through a partnering concern.
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February 1, 2023 – Adani Cancels $2.5 Billion FPO
- Amid mounting pressure and a massive stock price decline, Adani Enterprises withdraws its FPO despite initially managing to raise funds.
- Moreover, Gautam Adani released his video message stating that it would not be “morally correct” to proceed with the FPO amid market volatility. The company offered to refund all investors.
February 2023 – Global Concerns and Stock Market Impact
- Adani’s stock continues to slide, wiping out approximately $153 billion from the conglomerate’s market cap. International investors, including Credit Suisse and Citigroup, halt accepting Adani securities as collateral.
- Global banks start assessing their exposure to Adani Group companies.
March 2023 – Indian Government and Regulatory Scrutiny
- India’s Supreme Court establishes an expert committee to investigate allegations against Adani following the opposition’s political demands and public suspicion. The INDI Alliance demanded a thorough investigation against the Adani Group.
- Additionally, SEBI also began its own investigation into Adani Group’s financial practices, including allegations of offshore funds and stock manipulation.
May 2024 – Supreme Court Clears Adani Group
- After months of investigation, SEBI submits its reports to the Supreme Court. The report found no conclusive evidence of stock manipulation or significant regulatory breaches by the Adani Group.
- SEBI also indicates that it is still investigating some aspects related to offshore entities, but no substantial irregularities have been discovered thus far.
- Supreme Court cleared Adani Group of all allegations based on SEBI investigation till 2016. A few parts of the allegations remained under investigation.
June 27, 2024 – SEBI Sent ‘Show Cause’ Notice To Hindenburg Research
- SEBI served Hindenburg with a ‘show cause’ notice regarding its shorting of Adani shares after making their claims public.
- Hindenburg Research responded by stating that their January 2023 publication disclosed that they hold a shorting position on Adani Group shares. They state that they trade through U.S.-traded bonds and non-Indian-traded derivative instruments.
- They also clarified that they made a $31,000 profit from shorting Adani Group shares and bonds.
August 10, 2024 – Hindenburg Research Says SEBI Is Compromised
#MadhabiPuriBuch and #DhavalBuch issue detailed Press Statement. The last para is telling “The fact that…allegations are being made with new falsehoods each time, in
instalments, makes it clear that the only intention is ..to build a false narrative.” @SEBI_India #Hindenburg pic.twitter.com/VSkZjh1RDs— GhoseSpot (@SandipGhose) September 13, 2024
- Hindenburg released a whistleblow report against the SEBI Chairperson Madhabi Buch and her husband had a stake in Adani’s offshore dealings.
- Madhabi Bush responded by stating that Hindenburg had resorted to character assassination of the SEBI Chairperson to attack SEBI’s credibility.
- Their responding statements called Hindeburg’s Whistleblower publication “malicious and motivated.”
- On 11th August 2024, SEBI submitted that all but one investigation into Adani was completed. SC gives SEBI 3 months to submit its final report.
September 13, 2024 – New Allegations Agianst Adani Group
- Hindenburg Research posts a fresh allegation on X. It cites that Swiss authorities had allegedly frozen over $310 million across multiple Swiss bank accounts of entities linked to the Adani Group.
- Adani immediately denies these allegations, calling them baseless and claiming they were part of the ongoing attempt by the same group to tarnish their image.
The Motives Behind Anti-Adani Campaign
Hindenburg and its allies are nothing more than well-paid puppets pulling the strings for their masters. A so-called "independent" report by Gotham City, funded by the same Open Society Foundation backing Hindenburg is nothing short of a pathetic attempt to manipulate markets and… https://t.co/pRS43MZaeg pic.twitter.com/Uw5or06JWd
— The Poll Lady (@ThePollLady) September 13, 2024
One of the major points of contention in the Adani-Hindenburg saga is the financial gain that Hindenburg Research reaped from its repeated attacks on Adani. Hindenburg shorted Adani stocks after publishing its first set of allegations, but earned a miniscule amount of profit. However, no one knows who benefitted from crashing Adani shares. The Deep State funds Hindenburg Research through OpenScoiety. Thus, Hindenburg Research’s master have a vested interest in bringing down the stock prices of companies it investigates. In the case of Adani, Hindenburg’s attacks plummeted Adani’s Stock prices everytime by releasing a series of reports filled with damaging allegations.
This strategy seems to allow Hindenburg Research and the powers behind the group to profit from the subsequent fall in Adani’s stock value.
The timing and intensity of Hindenburg’s reports against Adani leads to speculations of motive. They seem to go beyond merely uncovering financial misconduct. Critics argue that these reports are designed to disrupt the market. And they allow the Deep State powers behind Hindenburg Research to profit from the volatility. Moreover, these reports allows the Indian Opposition to benefit from framing Adani as a BJP beneficiary. Adani Group also hints at external powers that are using the Adani name to create chaos in the market and politics.
🚨 BREAKING :
Adani group exposes Hindenberg. George Soros is rattled.~ Adani Group calls Hindenberg's allegations Baseless, Irrational & Absurd.#HindenburgResearch #sensex#sharemarket #stockmarketsindia https://t.co/XYaEtoscLc pic.twitter.com/zxNE1HtWWt
— Truclaw 🌊 (@truclaw) September 13, 2024
Adani Group alleges that Hindenburg’s reports are part of a broader strategy to manipulate stock prices and take advantage of market disruptions.
The Bigger Picture: Why Hindenburg Fixates on Adani
Hindenburg says the prosecutors have detailed. The court order suggests Ministère public de la Confédération (MPC) ie Federal Prosecutor's Office relied on the reports of a New York Company released on January 24 which is the date Hindenburg released it report. (Translate and… https://t.co/ygrEB6wNY3 pic.twitter.com/jDxhRoHn6i
— Ajay Rotti (@ajayrotti) September 12, 2024
Hindenburg’s persistent focus on Adani raises questions about why the US-based short seller targets the Indian conglomerate so aggressively. Some analysts suggest that Adani’s rapid expansion in sectors like infrastructure, energy, and ports makes it an attractive target for short sellers. They suggest that Hindenburg may be looking to destabilize large, influential companies while profiting from making unverifiable claims.
Other Analysts point out that Adani’s rise while the BJP is in power makes it an even more compelling target for Anti-India forces.
They state that Hindenburg Research’s backers want to control the political powers by questioning corporate governance and regulatory oversight in India. Despite this, the Adani Group continues to maintain its position as one of India’s most powerful business empires. The company resiliently faces constant allegations and investigations propelled by Hindenburg’s efforts to have a long-term impact on Indian conglomerates. However, the ongoing battle between the two entities continues to fuel speculation and controversy.
The Adani-Hindenburg Conflict Unfolds
As the battle between Hindenburg Research and the Adani Group continues, it has caused yet another dip in the Adani share prices. Thus, this almost immediate impact of the short seller’s report on the global financial markets questions their role in the power dynamics between corporations and regulatory bodies.
While Hindenburg and its masters may have yet again capitalized on its reports to gain financially, Adani remains steadfast in its defense. This conflict of financial titans may continue to evolve into a full-scal war by embedding geopolitical gains into its folds. However, for now, the Adani Group stands resilient, with its reputation largely intact despite the repeated assaults from Hindenburg.
