On March 23, Hindenburg Research, an investment research company, announced that they would be releasing a new report in the near future. This announcement comes two months after the company released a report alleging that the Adani Group of India was involved in a long-term scheme of stock manipulation and accounting fraud.
New report soon—another big one.
— Hindenburg Research (@HindenburgRes) March 22, 2023
Hindenburg’s announcement of a new significant report coincides with a period of banking instability in the US after the recent collapses of Silicon Valley Bank and Credit Suisse. It’s worth mentioning that the research firm faced criticism from Twitter users for allegedly displaying a biased approach by releasing a lengthy report on Adani Group while ignoring the failures of the two major US banks.
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A Twitter user asked, “Where is Hindenburg hiding now?” while another user commented on the recent collapse of Silicon Valley Bank and questioned why Hindenburg did not provide any report or warning despite being the biggest FDIC-insured institution to fail since 2008. The user further suggested that Hindenburg’s silence may indicate either selective amnesia or a well-planned strategy.
Adani Group had dismissed the accusations made by Hindenburg as a “calculated attack” on India, its institutions, and its growth story. The Group claimed that the allegations were baseless and referred to them as “nothing but a lie.” Adani Group further stated that the report was published with an ulterior motive of manipulating the market to enable Hindenburg to profit financially.
Also Read: Adani-Hindenburg row: SC forms top panel, asks SEBI to submit report
Adani Group contended that Hindenburg’s report was not just an unwarranted attack on a single company but a deliberate attack on India, its institutions, and the nation’s growth narrative.
Since the report’s publication on January 24, Gautam Adani’s conglomerate has seen a decline of over $150 billion in market value in just five weeks.
The recently published M3M Hurun Global Rich List reported that Adani has lost ₹3,000 crore of wealth every week in the past year, leading to a 60% reduction in his net worth from its peak. The report estimated Adani’s total fortune at $53 billion as of mid-March.