Investment research firm Hindenburg Research recently accused the Adani Group of fraud, know about its owner and founder
Find out everything about the firm.
Following the publication of a study by investment research company Hindenburg Research that claimed the Adani Group had participated in “manipulation and accounting fraud,” shares of the Adani group’s firms decreased dramatically. The company claimed that the Adani Group had “substantial debt” and an 85% decline in value.
What is Hindenburg Research US investor firm, its owner and founder, track record and report
Political vultures hovering around Hindenburg report & building false narrative against LIC & banking sectors.
LIC holdings into Adani group is around ~7% of equity exposure. Every word is important here. Understand some simple math layman language.
1/ pic.twitter.com/3ljfbkIf3z— The Hawk Eye (@thehawkeyex) January 28, 2023
Decoding Hindenburg Report: Thread pic.twitter.com/RytYJI6lgL
— The Jaipur Dialogues (@JaipurDialogues) January 28, 2023
According to the Bloomberg Billionaires Index, Gautam Adani’s net worth dropped around $6 billion (roughly Rs 48,600 crore), down approximately 5%, in a single day. As of now, his net worth is estimated to be $113 billion.
In response to the charges, the Adani Group called the study a “malicious combination of selective misinformation and stale, baseless, and discredited allegations.” However, Hindenburg Research stated that it stands by its analysis.
Since then, the firm has become a trending topic of discussion with many people trying to find out more about it. So, here’s what we know about it:
What is Hindenburg Research?
Hindenburg Research is a well-known investment research company that specializes in activist short-selling. Nathan Anderson, who is headquartered in New York City, established it. It was named after the 1937 Hindenburg tragedy, which founders see as a preventable human-made disaster.
The company publishes reports on its website alleging corporate fraud and misbehavior. Additionally, while maintaining short positions in the firm prior to publishing reports, these papers include justifications for the practice of short selling and how it plays a key role in uncovering wrongdoing and safeguarding investors.
Other significant research of the firm
Previous studies from Hindenburg Research covered businesses including Nikola, WINS Finance, Genius Brands, China Metal Resources Utilization, SC Worx, HF Foods, Riot Blockchain, and more.
- The September 2020 report titled “Nikola: How to Parlay An Ocean of Lies Into a Partnership With the Largest Auto OEM in America,” eventually resulted in the resignation of Trevor Milton, the founder and executive chairman of Nikola.
- According to the company’s WINS Finance report published in June 2020, “a company subsidiary in China was subject to an RMB 350 million asset freeze that had not been reported to US investors.” In October 2020, around four months following the revelation, NASDAQ delisted WINS, particularly because of the concealed asset freeze we uncovered.
- Hindenburg Research predicted that Genius Brands, which was then trading at around $6.86 per share, will soon become a $1.50 stock owing to tremendous retail enthusiasm and upcoming dilution in a report from June 2020. Stunningly, the shares actually declined to $1.50 by July end of the same year.
- The firm published a report on China Metal Resources Utilization in May 2020 that detailed the company’s dire financial situation and several accounting problems, including proof of hidden related party transactions. Following this, EY resigned as auditor, and stock prices dropped by more than 90%.
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