Winning Bizness Desk
Mumbai. On January 25, America's 'Hindenburg' company released a report titled "Adani Group: How The World's 3rd Richest Man Is Pulling The Largest Con In Corporate History"' about Adani Group companies. Everyone knows what happened after that. The price of Adani's shares fell by about Rs 4 lakh crore, due to which Gautam Adani has moved from 3rd to 8th position in the list of the world's richest people. In such a situation, now the question is arising in everyone's mind that what is this 'Hindenburg', what does this company do, who is its owner, why did it issue this report?
Firm started in 2017 by Nathan Anderson
Nathan Anderson completed his graduation in International Business from the University of Connecticut, USA and worked in a data research company. Here his work was related to investment management of money and while working, Anderson quickly understood the nuances of data and stock market. He came to know that the stock market is the biggest den of capitalists in the world and there is a lot happening here that is beyond the understanding of common people. For this reason, the idea of starting a financial research company came to Anderson's mind. The result was visible in 2017 when Anderson started this company named 'Hindenburg'.
What revelations has Hindenburg made about the Adani Company?
Hindenburg has made two big allegations in his report regarding Adani company, due to which the shares of Adani Group companies have declined. The first allegation is that the share price of Adani Group companies is up to 85% higher than other companies doing business in the same sector. The second allegation is that Adani Group has increased the price of its shares by rigging the stock market. Adani invested money in companies in Mauritius and other countries. Those companies later bought shares from the Adani Group company. In this way, people's trust in Adani's company increases by buying shares of a foreign company. This increases the demand for the share and as the demand increases, the price of the share also increases.
Adani's brother Vinod is doing the same thing !
It has been said in the Hindenburg report that Adani's brother Vinod is doing the same thing while sitting in Dubai. In this report, 38 companies related to Vinod Adani have also been mentioned. Reading the report of 'Hindenburg' clearly shows that this company deliberately released this report to bring down the shares of Adani Group companies. The reason for this is that 'Hindenburg' has taken 'short position' on Adani Group companies. Actually, there are two main ways to earn money from the share market…
What is Hindenburg Research?
In its own words, Hindenburg Research is a firm that specialises in forensic financial research that focuses on issues like accounting irregularities, undisclosed related-party transactions, illegal or unethical business or financial reporting practices, and also undisclosed regulatory or financial issues among other things. The firm was founded by Nathan Anderson who is a Chartered Financial Analyst (CFA) by qualification and has also completed a Chartered Alternative Investment Analyst (CAIA) course.
How many companies have Hindenburg's prey ?
While Indian business conglomerate Adani Group is its latest target, the firm was most active in the year 2020 even as there was a global lockdown on account of the COVID-19 pandemic. Going by the publicly-available data on its site, the research firm that claims to unearth “man-made disasters floating around in the market,” has released reports on more than 15 companies till date starting 2017. The research firm has earlier released scathing reports on companies like Nikola, WINS Finance, China Metal Resources Utilization, SC Worx, Predictive Technology Group, SmileDirectClub and Yangtze River Port & Logistics among others.
