Adani shares fall as short seller Hindenburg announces short position

A man wearing headphones walks past an Adani Reality billboard in Mumbai, India on November 23, 2022. (Photo by Indranil Aditya/NurPhoto via Getty Images)

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Short-selling firm Hindenburg announced its short position in Adani Group companies ahead of the Indian market open on Wednesday and accused billionaire Gautam Adani of engaging in ‘brazen’ stock manipulation and accounting fraud .

“After extensive research, we took a short position in Adani Group companies through US-traded bonds and non-India-traded derivatives,” Hindenburg said in a lengthy report published on its website.

“Today we are revealing the findings of our 2-year investigation, presenting evidence that India’s INR 17.8 trillion ($218 billion) conglomerate Adani Group has engaged in a shameless scheme of stock manipulation and accounting fraud over decades,” Hindenburg said in his report.

Adani-affiliated shares fell in the early hours of the Mumbai trading session, with Adani Port lose more than 6%. Adani Powerthe stock price fell more than 4% and Adani Transmission also lost around 2.6%.

The Adani Group did not immediately respond to CNBC’s request for comment on the report.

Hindenburg also alleged that the Securities and Exchange Board of India had been lax in its investigation of Adani’s offshore funds as well as in enforcing regulations that would have subjected Adani companies to delisting. SEBI did not immediately respond to CNBC’s request for comment.

Since becoming a billionaire in 2008, Adani is now one of the richest people in the world with a fortune of $119 billion, according to the Bloomberg Billionaires Index.

In August, the company sought a hostile takeover of Indian media group NDTV, which in a filing said the move was “made without the consent” of its founders.

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