Are the Hindenburg allegations a scam? On 23rd January 2023, Hindenburg came out with a report titled, how the Adani Group the world’s third richest man is pulling the largest con in corporate history. The report that was put forward, came after a series of investigations in primary and secondary levels along with the help of certain articles and based on researches to ensure that it is legitimate.
Over the past 30 years, big stock market scams in India have exploited vulnerabilities in the local banking system. Hindenburg is a very good example for short- selling stocks. They call upon candidates where they feel there are vulnerabilities. They analyze and do investigation regarding the companies and come up with reports which are released on a timely basis. They also do whistleblowing, shortening the stocks, and making crazy money.
There can be two sides to this story, one is the Hindenburg is corrupt and wanted to work against India, put down its participation and performance in the business sector and the other side is, Hindenburg might be a company which supervises companies. Most of the wealth of Gautam Adani comes from the generation in the last three years. Almost 85% of the wealth of Adani was built in the last three years. It was after 2020 that Gautam Adani’s wealth has grown massively. Taking the appearance of recession into account, it is hard to make out how Adani’s companies and personal wealth has a spike when other companies are in a fall.
Hindenburg states that “$120,000,000,000 of wealth has been created with only an over of 100 billion coming in the last three years, it is largely through meteoric appreciation of stock price. All these controversies brings in the tendency for the Indian investors to loose trust in Adani Group, but it is not yet witnessed as the Adani Group says that the Hindenburg has used all the false conglomerates to make the report.
What does Hindenburg Report say about the Adani group?
The latest news on the Hindenburg has accused Adani group with regard to stock manipulation. This is overpowered by the Adani Group on the other hand, mentioning that these are all false allegations put upon them and is looking forward to add on legal action against Hindenburg. There are also parties like the congress party which demand a probe.
After the publication of the Hindenburg report, on Adani Group’s stocks it got slipped to the 7th spot. Gautam Adani’s net worth had slipped to nearly 20% after the issue of the report with his net worth standing just below $93 billion after stocks in the Adani Group slid sharply.
In conclusion, the demand put forward by the report states that, Adani Group has engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades.