Explainer: Who is behind Hindenburg, the company that is shorting Adani?

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Explainer: Who is behind Hindenburg, the company that is shorting Adani?

Reporting by Carolina Mandl in New York; Editing by Megan Davies and Josie Kao
January 26, 20235:41 AM GMT+7

NEW YORK, Jan 25 (Reuters) - Short-seller Hindenburg Research disclosed on Wednesday short positions in India's Adani Group, citing potential stock manipulation and accounting fraud in a report. The allegations sent bonds and shares in the conglomerate's companies down.

Hindenburg has a track-record of finding corporate wrongdoings and placing bets against the companies.

WHAT IS HINDENBURG RESEARCH

Founded in 2017 by Nathan Anderson, Hindenburg Research is a forensic financial research firm which analyses equity, credit and derivatives. On its website, Hindenburg says it looks for "man-made disasters," such as accounting irregularities, mismanagement and undisclosed related-party transactions. The company invests its own capital.

It was named after the high profile disaster of the Hindenburg airship in 1937 which ignited as it flew into New Jersey. After finding potential wrongdoings, Hindenburg usually publishes a report explaining the case and bets against the target company, hoping to make a profit.

WHO IS HINDENBURG'S FOUNDER?

Nathan Anderson, who graduated from the University of Connecticut with a degree in international business, started his career in finance at data company FactSet Research Systems Inc, where he worked with investment management companies.

WHAT IS HINDENBURG'S MOST HIGH-PROFILE BET?

Hindenburg is best known for its bet against electric truck maker Nikola Corp (NKLA.O) in September 2020, which generated "a big win," he told the WSJ, declining to specify the amount.

More details in https://www.reuters.com/markets/who-is-b...023-01-25/

Website : https://hindenburgresearch.com/

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Adani loses Asia's richest crown as stock wipeout reaches $86 billion
* Adani stocks suffer new setback on Indian bourses
* Stocks plunge day after successful share sale
* Billionaire slips out of top 10 on Forbes rich list
* Adani Enterprises, Adani Ports suffer worst day on record

By Chris Thomas and Aditya Kalra
February 1, 20237:59 PM GMT+7

BENGALURU, Feb 1 (Reuters) - Shares in Indian tycoon Gautam Adani's conglomerate plunged again on Wednesday as a rout in his companies deepened to $86 billion in the wake of a U.S. short-seller report, with the billionaire also losing his title as Asia's richest person.

Wednesday's stock losses saw Adani slip to 15th on Forbes rich list with an estimated net worth of $75.1 billion, below rival Mukesh Ambani, the chairman of Reliance Industries Ltd (RELI.NS) who ranks ninth with a net worth of $83.7 billion.

Before the critical report by U.S. short-seller Hindenburg, Adani had ranked third.

The losses mark a dramatic setback for Adani, the school-dropout-turned-billionaire whose fortunes rose rapidly in recent years in line with stock values of his businesses that include ports, airports, mining, cement and power. Now, the tycoon is fighting to stabilise his companies and defend his reputation.

The share slides come just a day after the Adani Group managed to muster support from investors for a $2.5 billion share sale for flagship firm Adani Enterprises (ADEL.NS), in what some saw as a stamp of investor confidence at a time of crisis.

The report by Hindenburg Research last week alleged improper use by the group of offshore tax havens and stock manipulation. It also raised concerns about high debt and the valuations of seven listed Adani companies.

The group has denied the allegations, saying the short-seller's narrative of stock manipulation has "no basis" and stems from an ignorance of Indian law. It has always made the necessary regulatory disclosures, it added.

More details in https://www.reuters.com/business/adani-g...023-02-01/

[specuvestor]

I had expected Adani to come off using history as a guide but little did I expect so swiftly. $100b lost and counting catching up with Elon Musk
https://www.valuebuddies.com/thread-1099...#pid167359

The share sale was cancelled. Hindenburg has cemented a legacy
https://www.channelnewsasia.com/business...ed-3248886

Adani loses Asia's richest crown as stock wipeout reaches $86 billion
* Adani stocks suffer new setback on Indian bourses
* Stocks plunge day after successful share sale
* Billionaire slips out of top 10 on Forbes rich list
* Adani Enterprises, Adani Ports suffer worst day on record

More details in https://www.reuters.com/business/adani-g...023-02-01/