New Delhi:
Adani group stocks rallied on Thursday after Hindenburg Research, which made international waves with campaigns targeting billionaire Gautam Adani that wiped billions from market value of his group companies, founder Nate Anderson announced its shutdown.
Shares of NDTV surged 9.15 per cent, Ambuja Cements jumped 3.88 per cent, Adani Green Energy rallied 3.35 per cent, Sanghi Industries climbed 3.34 per cent and Adani Power went up by 2.45 per cent on the BSE.
The stock of Adani Ports advanced 2.03 per cent, Adani Total Gas (1.78 per cent), Adani Enterprises (1.74 per cent), Adani Energy Solutions (1.54 per cent) and ACC (0.77 per cent).
Shares of Adani Wilmar, however, declined 1.19 per cent.
In intra-day trade, NDTV zoomed 15.59 per cent, Adani Power surged 9.21 per cent, Adani Green Energy soared 8.86 per cent, Adani Enterprises climbed 7.72 per cent, Adani Total Gas jumped 7.10 per cent and Adani Energy Solutions advanced 6.63 per cent The stock of Adani Ports climbed 5.48 per cent, Ambuja Cements jumped 4.55 per cent, ACC increased by 4.14 per cent, Sanghi Industries (3.77 per cent) and Adani Wilmar (0.54 per cent).
The combined market valuation of all 11 group firms stood at Rs 12.92 lakh crore.
The announcement by Anderson, 40, who started Hindenburg in 2017, came just days before Donald Trump’s inauguration as the new President of the United States.
While he cited the toll of the “rather intense, and at times, all encompassing” nature of the work as the reason for his decision”, critics were quick to link the shutting down Hindenburg’s alleged ties with George Soros and the so-called deep state being under significant pressure from the incoming Trump administration.
Typically, short-sellers like Anderson, who managed his firm’s own money but not that of others, bet against companies they believe are plagued with mismanagement or involved in some fraud/scam. Short sellers borrow a stock to sell it in the expectation the price will fall, then repurchase the shares and pocket the difference. They book loss if the reverse happens.
Hindenburg in January 2023 published a report accusing the Adani group of “pulling the largest con in the corporate history”, wiping out more than USD 150 billion in value of the group’s shares at their lowest point. Adani group vehemently denied all the allegations, including that being “engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades” and improper use of offshore tax havens to shore up group share prices.
“There is not one specific thing – no particular threat, no health issue and no big personal issue,” Anderson wrote in a letter posted on the firm’s website. “The intensity and focus has come at the cost of missing a lot of the rest of the world and the people I care about. I now view Hindenburg as a chapter in my life, not a central thing that defines me.”
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.)
