Hindenburg Research is accusing the Adani Group of manipulating stocks and committing fraud. read to know more about the issue and the firm.
What is Hindenburg Research and why is it accusing Adani Group?
Just a few days before Adani Enterprises‘ $2.5 billion share offering, the Adani Group’s stocks saw a sharp fall on Wednesday. A report by Hindenburg Research presents evidence revealing the conglomerate “engaged in a brazen stock manipulation and accounting fraud scheme over decades”. Hindenburg stated key companies in the group were holding “substantial debt” putting the entire group on a “precarious financial footing”. The firm specializes in forensic financial research. Additionally, as per its website, it holds decades of experience in the industry. However, Jugeshinder Singh, the Chief Financial Officer of the group stated the report shocked the company and called it a “malicious combination of selective misinformation and stale, baseless, and discredited allegations”.
Hindenburg Research: More on the firm
Hindenburg Research believes that “the most impactful research results from uncovering hard-to-find information. From atypical sources accounting irregularities; bad actors in management or key service provider roles; undisclosed related-party transactions. Illegal/ unethical business or financial reporting practices; and undisclosed regulatory, product, or financial issues” in different companies. The LLC was founded by Nathan Anderson. Anderson has a degree in international business management from the University of Connecticut.
Anderson did consult work at FactSet, a financial software firm Additionally, he has experience working in broker-dealer firms. Before founding Hindenburg, Anderson was working with Harry Markopolos, who flagged Bernie Madoff’s Ponzi scheme. “He is a world-class digger. If there are facts he will find them and all too often. He’ll discover that there are skeletons in the closet,” stated a Financial Times report.