$50B overnight takedown.

What to Know About the Fight Between Asia’s Richest Man and Hindenburg
Contributors: Low De Wei (Bloomberg.com)
Updated on January 27, 3:30 AM EST
What You Need To Know
In a David versus Goliath battle, a small New York short seller is taking on Asia’s richest person. Hindenburg Research’s allegations against Adani Group are threatening to unravel the meteoric rise of 60-year-old Indian tycoon Gautam Adani, whose wealth surged by $44 billion in 2022 when many billionaires saw their fortunes shrink.

In an almost 100-page report, Hindenburg has accused Adani Group of “pulling the largest con in corporate history,” having “engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades.” In response, the conglomerate has called the firm’s report “a malicious combination of selective misinformation and stale, baseless and discredited allegations.”

Short selling is a centuries-old, sometimes controversial strategy where a short seller alleges bad practices in a company and publicizes it, seeking to profit. While issuing its report, Hindenburg said that it had taken a short position in Adani Group companies through US-traded bonds and non-Indian-traded derivative instruments.

As both sides dig in, the stakes are rising for Adani and Indian markets.

Last edited by Emmeran (2023-01-27 06:14:00)