Hindenburg Research: Why did Adani’s shares crash today? what should investors do?

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Hindenburg Research
Hindenburg Research and Adani Group


In this exposé, we delve into the shocking findings of a two-year investigation conducted by Hindenburg Research Report, which sheds light on the intricate web of deceit and stock manipulation within the Indian conglomerate, Adani Group. The report presents compelling evidence that the Adani Group, led by Gautam Adani, the world’s third richest man, has engaged in an extensive accounting fraud scheme over several decades. We will explore the key findings of the investigation, the Adani family’s involvement, the use of offshore shell entities, and the potential impact on the group’s listed companies.

1. The Revelations by Hindenburg Research

The Hindenburg Research Report reveals that the Adani Group has amassed significant wealth, with Gautam Adani’s net worth soaring to approximately $120 billion, largely through substantial stock price appreciation in the group’s seven key listed companies. These companies have experienced an average spike of 819% in just three years.

2. Investigative Efforts

The investigation involved comprehensive research, including interviews with former senior executives of the Adani Group, scrutiny of thousands of documents, and diligent site visits across multiple countries. The research highlights the existence of 38 Mauritius shell entities controlled by Vinod Adani and several other offshore shell entities, raising concerns about the group’s financial operations.

3. Precarious Financial Situation

Even without considering the investigation’s findings, the seven key listed companies of the Adani Group face potential downsides of up to 85% on a fundamental basis due to inflated valuations. Furthermore, several of these listed companies have taken on substantial debts and reported alarming “current ratios,” indicating near-term liquidity pressures.

4. Family Control and Allegations of Fraud

A significant aspect of the Adani Group’s operations is its reliance on family members for key positions. Eight out of the 22 key leaders within the conglomerate are Adani family members, leading to concerns about transparency and corporate governance. Additionally, the group has faced multiple government fraud investigations, totaling an estimated $17 billion, related to alleged money laundering, corruption, and theft of taxpayer funds.

5. Offshore Shell Entities and Stock Manipulation

The investigation revealed that Vinod Adani, Gautam Adani’s elder brother, allegedly managed a complex network of offshore shell entities. Many of these entities show little to no signs of actual operations, yet they have moved substantial sums into Adani’s publicly listed and private entities. This offshore network may have facilitated stock manipulation, misleading investors about the true value of Adani Group’s listed companies.

6. Financial Controls and Auditing Concerns

One alarming aspect that the report highlights is the seemingly non-existent financial controls within the Adani Group. The group’s listed companies have experienced frequent turnovers in the Chief Financial Officer role, raising questions about the effectiveness of their financial oversight. The independent auditor for Adani Enterprises and Adani Total Gas, Shah Dhandharia, appears ill-equipped for the complex audit work required for such extensive conglomerates.

7. Attempt to Silence Critics

Despite claiming to welcome criticism, Gautam Adani has been accused of using his power and influence to silence journalists, commentators, and critics through litigation and pressure on the government and regulators. This raises further concerns about transparency and accountability within the Adani Group.


The Hindenburg Research Report poses 88 questions that demand answers from the Adani Group and Gautam Adani. These questions address the alleged fraud, offshore shell entities, accounting irregularities, and the conglomerate’s overall financial practices. Transparency and accountability are crucial for the credibility and trustworthiness of any corporate entity, and Adani Group must provide comprehensive responses to these questions.

The revelations in the report have significant implications for investors, stakeholders, and the general public. It is essential for regulatory authorities to thoroughly investigate these allegations and ensure that the Adani Group operates within the bounds of legality and transparency.


  1. What is the Hindenburg Research Report? The Hindenburg Research Report is a two-year investigation that uncovers alleged accounting fraud and stock manipulation within the Adani Group.
  2. How has Gautam Adani’s net worth grown so substantially? Gautam Adani’s net worth has surged due to significant stock price appreciation in the group’s key listed companies.
  3. What are the implications of the investigation on the Adani Group’s listed companies? The investigation raises concerns about the group’s financial stability, with potential downsides of up to 85% on a fundamental basis for its key listed companies.
  4. How does the Adani Group’s reliance on family members impact its operations? The presence of family members in key leadership positions raises questions about transparency and corporate governance.
  5. What are the allegations of fraud and money laundering against the Adani Group? The group has faced multiple government fraud investigations, alleging money laundering, corruption, and theft of taxpayer funds.

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