Shares in Adani Group companies lost $12 billion in market value after US investor Hindenburg Research said it was shorting the conglomerate’s stocks and accused firms owned by Asia’s richest man of “brazen” market manipulation and accounting fraud.
Bonds and shares of Adani-related entities slumped after Hindenburg, an investment research firm that specializes in short-selling, made wide-ranging allegations of purported corporate malpractice following a two-year investigation into the tycoon’s companies.
Hindenburg’s Jan. 24 report, constituting the research firm’s opinions and investigative commentary where readers are advised that use of the report is at their own risk, details a web of Adani-family controlled offshore shell entities in tax havens, from the Caribbean, Mauritius and the United Arab Emirates. It claims these were used to facilitate corruption, money laundering and taxpayer theft, while siphoning money from the group’s listed companies.
The report is “a malicious combination of selective misinformation and stale, baseless and discredited allegations,” Adani Group Chief Financial Officer Jugeshinder Singh said in a statement.
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