The Adani-Hindenburg row: What you need to know

This week, the once Asia’s wealthiest and the third richest man in the world, Gautam Adani lost $58 billion in net worth and $108 billion in business value.

All because of a report by the US short seller Hindenburg Research.

On Wednesday, Adani Group called off its $2.5 billion share sale. The firm released a 413-page response to the Hindenburg report calling it a “calculated attack on India… and the growth story and ambition of India.”

The report
Hindenburg released a two-year investigative report on Indian business mogul Gautam Adani on January 24th, detailing how he is “pulling the largest con in corporate history” through stock manipulation and accounting fraud.

The report says that since 2019, Adani added $100 billion to his net worth through the stock price appreciation of his companies. It alleges that share prices were artificially raised using offshore shell companies.

Ties with Modi
Since the release of the 100-page report, many have criticized Indian Prime Minister Narendra Modi’s close ties with Adani and doubt the alleged fraudulent methods were given leeway.

What now?
Hindenburg being a short seller is not hiding the fact that it would benefit if Adani’s shares fall.

Gautham Adani is now the 17th richest person in the world, just below Meta’s Mark Zuckerberg.