Hindenburg Shutting Down: Founder Nate Anderson Announces Decision to Disband the Research Firm in a Post on ‘X’, Formerly Twitter
Adani Stocks Rally on Hindenburg News
January 16, 2025: Adani Group stocks saw significant gains in Thursday’s stock market trade following the announcement that Hindenburg Research, the short-selling firm known for its critical report on the group, has ceased operations. Adani stocks surged as high as 9% intraday.
Performance of Adani Group Stocks
On the stock exchanges, the following gains were observed in Adani group stocks:
- Adani Power: Up 9.2% to ₹599.9 per share.
- Adani Green Energy: Rose 8.8% to ₹1,126.8 per share.
- Adani Enterprises: Gained 7.7% to ₹2,569.85 per share.
- Adani Total Gas: Increased by 7.1% to ₹708.45 per share.
- Adani Energy Solutions: Climbed 6.6% to ₹832 per share.
- Adani Ports: Advanced 5.4% to ₹1,190 per share.
Other companies associated with the group also experienced positive movements:
- Ambuja Cements: Rose 4.5% to ₹542.9 per share.
- ACC: Increased 4.1% to ₹2,054 per share.
- NDTV: Gained 7% to ₹157.9 per share.
In comparison, the broader market also showed gains, with the BSE Sensex trading 0.4% higher at 9:45 AM.
Hindenburg Announces Closure
In a post on ‘X’ (formerly Twitter), Hindenburg Research Founder Nate Anderson revealed his decision to shut down the firm.
“The plan has been to wind up after we finished the pipeline of ideas we were working on. As of the last Ponzi cases, we just completed and are sharing with regulators,” Anderson stated in a blog post.
He clarified that the decision was not driven by any specific threat, health issue, or personal problem.
“Someone once told me that, at a certain point, a successful career becomes a selfish act. Early on, I felt I needed to prove some things to myself. I have, now, finally found some comfort with myself, probably for the first time in my life,” he explained.
Anderson further reflected on the personal cost of his career, emphasizing that while Hindenburg was a significant chapter, it no longer defined him.
Hindenburg’s Controversial History with Adani Group
Hindenburg Research had made headlines in January 2023 by accusing Adani Group of alleged “stock manipulation” amounting to ₹18 trillion ($218 billion) and “accounting fraud schemes” over decades. The firm claimed that the Adani family controlled offshore shell entities in jurisdictions such as the Caribbean, Mauritius, and the UAE, allegedly facilitating corruption, money laundering, and taxpayer theft.
Sebi Investigations
India’s market regulator, the Securities and Exchange Board of India (Sebi), has completed 22 of 24 investigations into the Adani-Hindenburg case. Show-cause notices were issued to Hindenburg and an Adani entity, but no final order has been passed yet.
Allegations Against Sebi Chief
Hindenburg Research also accused Sebi Chairperson Madhabi Puri Buch of a conflict of interest in the Adani investigation, citing her past investments in Adani-related funds.
“Sebi was tasked with investigating investment funds relating to the Adani matter, which included funds Buch was personally invested in and funds by the same sponsor highlighted in our original report,” Hindenburg alleged.
It further claimed that an Indian entity, 99% owned by the Sebi Chairperson, generated ₹23.985 million ($312,000) in consulting revenue during her tenure as Chairperson.
Despite the controversies, the announcement of Hindenburg’s closure has been seen as a positive signal for Adani Group’s market performance.
Also Read: Adani Green Energy Share Price Continues Rally, Soars Another 7% on the 2nd Day: Here’s Why
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