On Thursday, January 16, 2025, Adani Group equities were trading higher on the stock exchange. Stocks of the Adani Group jumped as much as 9% intraday after Hindenburg Research, a short-selling firm notorious for its research against the group, announced that it had ceased operations.
The share prices of Adani Power, Adani Green Energy, and Adani Enterprises all increased by 9.2 percent (Rs 599.9 per share), 8.8 percent (Rs 1,126.8 per share), 7.7 percent intraday (Rs 2,569.85 per share), 7.1 percent (Rs 708.45 per share), 6.6 percent (Rs 832 per share), and 5.4 percent (Rs 1,190) on the stock exchanges.
In addition, ACC's share price increased 4.1% to Rs 2,054 per share, Ambuja Cements' share price increased 4.5% to Rs 542.9 per share, and NDTV's share price increased 7% to Rs 157.9 per share. In contrast, the BSE Sensex demonstrated gains today, closing 0.4% higher at 9:45 AM.
Nate Anderson, the founder of Hindenburg Research, announced his decision to dissolve the company in a social media post on "X," formerly Twitter.
After we completed the ideas we were working on, the goal was to wind up. In a blog post published on X, Anderson added, "As for the most recent Ponzi cases, we recently finished and are sharing with regulators."
He added that the choice was not motivated by any one particular factor, threat, health concern, or significant personal issue.
"I once heard someone say that having a successful career eventually turns into a selfish endeavor. I felt the need to prove a few things to myself early on. For the first time in my life, I think I've finally made some peace with myself," Anderson said.
"If I had allowed myself to, I probably could have had it all along, but I had to go through a little hell first. I've missed a lot of the outside world and the people I care about because of the intensity and focus. I now see Hindenburg as a chapter in my life, not a central thing that defines me," he continued.
Notably, in January 2023, Hindenburg Research initiated vicious attacks against Adani group companies, claiming that the group had participated in decades of "accounting fraud schemes" and "stock manipulation" worth about Rs 18 trillion ($218 billion).
According to the US-based short-seller firm, the Adani family controlled offshore shell companies in tax havens such as the United Arab Emirates, Mauritius, and the Caribbean to syphon off money from the group's listed companies and enable corruption, money laundering, and taxpayer theft.
In the Adani-Hindenburg affair, market watchdog Sebi (Securities and Exchange Board of India) has finished 22 of the 24 investigations. Hindenburg and an Adani group company have also received show-cause letters from the market watchdog. But as of yet, no order has been issued on the subject.
Madhabi Puri Buch, the head of Sebi, was later charged by Hindenburg Research with having a conflict of interest in the Adani case because of her prior involvement in the company.
According to Hindenburg's August 2024 statement, "Sebi was tasked with investigating investment funds relating to the Adani matter, which would include funds Buch personally invested in and funds by the same sponsor which were specifically highlighted in our original report."
"According to its financial statements, the Indian entity, which is still 99 percent owned by the Sebi Chairperson, generated Rs 23.985 million ($312,000) in revenue (i.e., consulting) during the financial years '22, '23, and '24—during her tenure as Chairperson," it said.
