‘Most proud of our research on Adani’: Hindenburg responds to Sebi (2024)

US short-seller Hindenburg Research on Tuesday said that its research report on the Adani Group, released last year, is its best work, expressing pride in its findings. This statement came in response to a show cause notice from the Securities and Exchange Board of India (Sebi) related to the ongoing Adani-Hindenburg investigation.

“Our research on Adani remains the work we are most proud of,” Hindenburg Research stated in a blog post responding to Sebi.

In January 2023, Hindenburg released a damning report on the Adani Group, accusing it of stock market manipulation and accounting fraud.

Following the report, the Adani Group’s market capitalisation plummeted by $150 billion, despite the group vehemently denying the accusations.

However, subsequent investigations found the allegations against the Adani Group to be unsubstantiated.

Efforts by the Adani Group to reduce its debt have helped the conglomerate recover strongly. Chairman Gautam Adani recently said that the Hindenburg report was "designed to defame" the group.

In its blog post, Hindenburg also called Sebi's 46-page show cause notice "nonsense."

“We think it is nonsense, concocted to serve a pre-ordained purpose: an attempt to silence and intimidate those who expose corruption and fraud perpetrated by the most powerful individuals in India,” Hindenburg alleged.

“To this day, Adani hasn’t directly addressed the findings from our research or from dozens of media investigations, instead offering deflections and blanket denials,” Hindenburg added in its response.