As Gautam Adani drops down the world’s rich list, here’s what we know about Hindenburg Research’s accusations and what they mean for the Indian conglomerate
The sprawling empire of Gautam Adani, an Indian industrialist and one of the world’s richest men, seemed unstoppable until the US investor Hindenburg Research accused his company of “pulling the largest con in corporate history”.
With a background in commodities trading and diamond sorting, Asia’s richest man expanded his business into a US$220bn ports-to-power conglomerate that includes seven listed companies on Indian exchanges, as well as numerous private companies. Activist short sellers like Hindenburg typically take a short position in a tradable company they believe is heavily overvalued before releasing their reports to the public, in expectation that investors will then drive down the price of their targets.
Hindenburg cited a high turnover of chief financial officers at the group’s listed flagship Adani Enterprises as a red flag, as well as the use of “relatively unknown” auditors.that it said Hindenburg made to book massive financial gains.
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