Summary:

Adani is a large Indian conglomerate with interests in energy, ports, and other infrastructure. In 2020, a short-selling firm called Hindenburg Research released a report accusing Adani of various improprieties, including environmental violations, accounting irregularities, and conflicts of interest. Adani denied the allegations and accused Hindenburg of spreading false information to manipulate the stock price. The report generated significant media attention and scrutiny of Adani’s business practices.

Timeline:

• 2020: Hindenburg Research releases a report titled “The Adani Group: A Corporate Mirage Built on Debt” that accuses Adani of various improprieties, including environmental violations, accounting irregularities, and conflicts of interest. The report alleges that Adani has overstated the capacity of its ports and power plants and understated its debt.

• June 14, 2021: The Economic Times reports that the Securities and Exchange Board of India (SEBI) has launched an investigation into Adani’s compliance with securities laws and regulations. Adani denies any wrongdoing.

• June 15, 2021: Adani’s stocks tumble in response to the SEBI investigation and the Hindenburg report.

• June 18, 2021: Adani releases a statement calling the Hindenburg report “blatantly erroneous” and accusing Hindenburg of “deliberately misleading” investors to manipulate the stock price.

• June 21, 2021: The Economic Times reports that Adani’s stocks have rebounded following a statement by the National Securities Depository Limited (NSDL) that there were no frozen accounts belonging to Adani Group companies.

• July 2021: Adani files a defamation suit against the author of the Hindenburg report, Nathan Anderson, and seeks a court order to remove the report from the internet. Anderson defends the report as accurate.

• August 16, 2021: The Economic Times reports that the SEBI investigation into Adani has found no evidence of regulatory violations. Adani’s stocks rise following the news.

• August 19, 2021: Hindenburg releases a statement standing by its report and accusing Adani of using legal threats to silence critics.

• September 2021: Adani denies reports that it is under investigation by the U.S. Securities and Exchange Commission (SEC).

Sources:

• Hindenburg Research report: https://hindenburgresearch.com/adani/
• Adani’s response to the Hindenburg report: https://www.adani.com/our-group/press-releases/2021/06/18/statement-on-hindenburg-report
• Economic Times coverage of the Adani-Hindenburg controversy: https://economictimes.indiatimes.com/topic/hindenburg-research
• Hindenburg’s response to Adani’s legal threats: https://hindenburgresearch.com/hindenburg-stands-by-report-as-adani-strikes-back/