Nate Anderson's Hindenburg: No more trouble to Adani & Shares up

Adani Group Shares Rally Over 5% As Hindenburg Research To Be Shut Down 

Adani Enterprises, Adani Power, Adani Port, and Adani Green Share prices rallied over 5% as soon as the Nate Anderson’s Hindenburg disbanded news hit social media today. This news relaxed Adani, and his group with millions of Indian Investors. Joy is spread among the investors when Hindenburg research shutting down news gained popularity among the investors. 

Adani Green Energy Share price has increased by 5.5% with Adani Power and Adani Enterprise stocks while Adani Energy, Adani Ports & SEZ, and Adani Total Gas shares grew by more than 4%.

Adani Wilmar shares traded without any change. Adani Group marks closed on a positive note of 5% more after the short-seller company, Hindenburg Research, that caused the $100 Bn short-sell-off of Adani Group shares was dissolved.

 

Why Nate Anderson Disbanded Hindenburg?

Nate cited personal reasons for closing his firm. To spend more loving time with his family.

 

(Source: livemint.com)

 

Adani-Hindenburg BackStory: A Timeline of Allegations on Adani Group

January 2023: Hindenburg claimed that the Adani group was performing manipulative behavior in its stocks, accounting fraud, and even money laundering from tax havens offshore had put the shell companies.

The Adani Group had just rejected the main objections of guilt presented in the report.

February 2023: Adani Enterprises decided to stop the follow-on public offer worth about Rs.20,000 crore the very next day of announcing the successful closing of the offer.

March 2023: Following the controversy of Hindenburg’s fraudulent allegations on the Adani Group companies, the Supreme Court of India directed the formation of a Commission in March 2023 to investigate Adani Group. 

May 2023: The SC directed SIT to report back unsuccessfully, PAC estimates loss but questions adequacy to presume ZPV. Adani Companies' alleged involvement with political figures is denied, there was not any pattern of manipulation in Adani Companies. Neither there was a failure to regulate. 

August 2023: 22 out of 24 investigations are completed and 2 are still under warp. The probe involved 13 overseas Adani entities. SEBI tries to get info from external agencies and has communicated to five countries to provide details on the FPIs.

January 2024: Knowingly, it granted three months in which SEBI completed its investigation into the allegations of Hindenburg labeling the Adani Group as a violator and again sovereignly denied it handed over to CBI.

July 2024: It defined all the frauds suspected in the past, but there was a fresh issue with Kotak Bank.

August 2024: In reports, Hindenburg turned its sights towards SEBI Chairperson Madhabi Puri Buch alleging that she is in a conflict of interest. The report said Buch and her husband invested in offshore funds linked with Adani Group entities, which increased some worries regarding SEBI's hesitance to act upon the report dating back to January 2023. Both denied the claims. 

 

Hindenburg Research's Impact on Adani Group

Hindenburg Research has been targeting the Adani set of firms and has made public information which has a great impact on how the wealth of Gautam Adani has been assessed and for most of the time during 2023. 

Nevertheless, most of those losses were subsequently recovered by the Adani group on the stock exchange. As serious as the allegations hurled by Hindenburg were, Adani and his conglomerates have been dismissing them all of the time with a great sense of pride.

 

Conclusion

The Hindenburg Research closure comes as a relief for the Adani Group and its investors, visibly depicted through an increased stock price. In the face of serious allegations and amidst all controversies, the Adani Group has denied any wrongdoing and seems to have somewhat recuperated from serious setbacks. This news is a turning point, saying that now, the company could just focus on its further growth. Investors seem optimistic heading into what has been a challenging year.

 

DISCLAIMER: NOT a buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always discuss with an eligible financial advisor before investing.