In January 2023, Hindenburg Research published a report into Gautam Adani’s business empire, accusing Asia’s then richest man of fraud going back decades. The impact was immediate and explosive, with over $100 billion wiped off the value of his companies.
Eighteen months later, Adani, who has denied any wrongdoing, has largely recovered from the broadside. The tiny US short seller has revealed that it made just over $4 million betting against the Indian billionaire.
The figure, disclosed for the first time by Hindenburg, was published on the company’s website on Monday, along with details of a letter it said it had received from India’s markets regulator.
According to Hindenburg, the Securities and Exchange Board of India has alleged that the report on Adani contained inaccurate statements meant to “mislead readers.” It has been reported that SEBI and the Adani Group have been asked for comment.
Hindenburg stated, “This is an attempt to silence and intimidate those who expose corruption and fraud perpetrated by the most powerful individuals in India.”
In its report last year, Hindenburg had accused the Adani Group of “brazen stock manipulation” and questioned the “sky-high” valuations of the conglomerate’s firms. The short seller stated that it made $4.1 million in gross revenue through gains related to Adani short positions.
The report by Hindenburg caused one of the most stunning upheavals in India’s corporate history. The Adani Group denounced the accusations as “baseless” and “malicious,” but failed to halt the staggering stock market meltdown that followed.
Adani’s personal fortune collapsed by more than $80 billion in the month following the release of the report. However, the group has made a remarkable comeback since then, with shares in most of Adani’s listed firms rallying this year.
SEBI launched a probe into the group after the Hindenburg report. In January, India’s top court ordered the market regulator to wrap up its investigation quickly and stated that no further probes into the group were needed.
Hindenburg criticized SEBI for neglecting its responsibility and seemingly doing more to protect those perpetrating fraud than to protect the investors being victimized by it.
