Adani Stocks Surge 5% as Hindenburg Closes Short Bet

Shares of Adani Group companies saw a significant rally on Thursday, with most stocks gaining over 5%, following the announcement that Hindenburg Research, the firm behind the $100 billion sell-off of Adani shares, is shutting down operations.

Notably, Adani Enterprises, Adani Green Energy, and Adani Power shares surged 5.5% each. Meanwhile, Adani Ports & SEZ, Adani Energy Solutions, and Adani Total Gas shares rose over 4% each.

Adani Energy Solutions shares climbed 1.13% to ₹780.20, and Adani Wilmar's share price increased by 2.45% to ₹273.50. However, Adani Total Gas saw a slight decline of 1.16%, closing at ₹661.45. Adani Wilmar shares traded flat, while Ambuja Cement, ACC, and NDTV recorded early trade gains of up to 4% on January 16.

Hindenburg Research Announces Closure

Nathan Anderson, the founder of US-based Hindenburg Research, confirmed in a statement that the firm is being “disbanded.” Anderson explained the decision, saying, “I have decided to disband Hindenburg Research,” citing the toll of the work and his desire to focus on other aspects of life.

Hindenburg Research, known for its controversial reports, accused the Adani Group in 2023 of misusing offshore tax havens, a claim the conglomerate strongly denied.

The firm’s closure follows a Republican Congressman’s request to the Department of Justice to preserve documents related to Adani investigations. Anderson emphasized that Hindenburg had successfully held powerful entities accountable, with nearly 100 individuals charged by regulators partly due to the firm’s work.

A Timeline of the Adani-Hindenburg Conflict

January 2023: Hindenburg published allegations of stock manipulation and fraud against Adani Group, leading to a significant loss in market value. Adani denied the claims and later recovered much of the market losses.

February 2023: Adani Enterprises canceled its ₹20,000-crore follow-on public offer (FPO) a day after successfully closing it.

March 2023: The Indian Supreme Court established a committee to investigate the stock crash linked to Hindenburg’s allegations.

May 2023: A Supreme Court panel reported no clear evidence of manipulation or regulatory failure in Adani entities.

August 2023: SEBI revealed 22 out of 24 investigations into the matter were complete, with two interim probes pending due to awaiting information from foreign agencies.

January 2024: The Supreme Court granted SEBI an additional three months to finalize its investigation while rejecting a request to transfer the case to the CBI.

July 2024: Hindenburg disclosed receiving a SEBI notice accusing it of regulatory violations, naming Kotak Bank for its involvement.

August 2024: Hindenburg targeted SEBI Chairperson Madhabi Puri Buch, alleging a conflict of interest. Both Buch and her husband denied the claims, while SEBI maintained its impartiality.

Nathan Anderson described Hindenburg’s journey as impactful but noted the demanding nature of the work had come at a personal cost. “Hindenburg is a chapter of my life, not the defining one,” he stated in his closing remarks.