Hindenburg Strikes Adani Again: Swiss Bank Freezes ₹2,600 Cr, Adani Group Denies Claims
On September 12, American short-selling firm Hindenburg Research made new allegations against the Adani Group through a post.
The report also states, “According to new records from the Swiss Criminal Court, complainants described how an individual associated with the Adani Group invested in BVI/Mauritius and Bermuda funds without disclosing their identity.”
According to a report by a Swiss media outlet, the Geneva Public Prosecutor’s Office was investigating the group’s wrongdoing long before Hindenburg filed the first allegations against the Adani Group.
However, late Thursday night, the Adani Group issued a clarification on this new report, dismissing all the allegations as false, stating that this is an attempt to lower its market value.
The Adani Group told the media – if you publish the news, include our full statement. In a blog post released by the group on Friday, they stated, “The Adani Group has no connection to any proceedings in the Swiss Court. None of our company’s accounts have been seized. Our foreign holding structure is completely transparent and lawful.” It further stated that this is another attempt to damage their reputation and market value.
At the end of the statement, the media was also instructed not to publish the news, and if they did, they must include the group’s full statement.
Allegations of Money Laundering and Stock Manipulation Against the Adani Group
On January 24, 2023, Hindenburg Research published a report related to the Adani Group. After the report, the group’s shares witnessed a significant decline, though they later recovered. In response to this report, the Indian stock market regulator, Securities and Exchange Board of India (SEBI), sent a 46-page show cause notice to Hindenburg.
In a blog post published on July 1, 2024, Hindenburg Research stated that the notice claimed they had violated regulations. SEBI alleged that some false statements in Hindenburg’s report were intended to mislead readers, according to the company. In response, Hindenburg made several accusations against SEBI.
Adani Enterprises Share Dropped by 59% After the Report
On January 24, 2023 (as per Indian time, January 25), the share price of Adani Enterprises, the flagship company of the Adani Group, was ₹3,442. On January 25, it closed at ₹3,388, a decline of 1.54%. By January 27, the share price dropped by 18% to ₹2,761. By February 22, it had dropped 59% to ₹1,404. However, the shares later recovered.
Although Adani denied any allegations of wrongdoing, the group canceled its ₹20,000 crore follow-on public offer. The Supreme Court formed a six-member committee to investigate the case, and SEBI also conducted its investigation.
After the court’s decision, Adani Group Chairman Gautam Adani stated, “The court’s decision shows that the truth has prevailed.
