Hindenburg, Adani wrecker, to shut shop

US-based short seller Hindenburg Research, which made waves with reports targeting Indian conglomerate Adani Group that battered shares of the group companies, is officially winding up its business.

Advertisement

No specific reason

There is not one specific thing — no particular threat, no health issue, and no big personal issue.

Nathan Anderson, Hindenburg founder

“As I’ve shared with family, friends and our team since late last year, I have made the decision to disband Hindenburg Research. The plan has been to wind up after we finished the pipeline of ideas we were working on. And as of the last ponzi cases we just completed and are sharing with regulators, that day is today,” Hindenburg founder Nathan Anderson wrote in a personal note on the research firm’s official website.

However, he did not specify any reason behind the move.

“So, why disband now? There is not one specific thing — no particular threat, no health issue, and no big personal issue,” he added in the note. Hindenburg gained global attention in January 2023 when it released a report alleging fraud and stock manipulation by Indian conglomerate Adani Group. The report stated that the group was artificially boosting its share prices and was overvalued by over 80 per cent.

The report triggered a massive selloff in Adani Group shares, which led to loss in market capitalisation. This was followed by successive reports. All charges were denied by Adani and his companies.

In 2024, the short seller levelled allegations against Madhabi Puri Buch, chairperson of the Securities and Exchange Board of India (Sebi), and her husband Dhaval Buch of having a conflict of interest, claiming they held stakes in offshore entities linked to the alleged Adani money siphoning.

These allegations were based on documents provided by a whistleblower and other investigations.

The allegations by Hindenburg led to a political storm for the market regulator, which followed up with several accusations against the Sebi chairperson, questioning the objectivity in the investigation and conflict of interest.

The US-based firm was known for short selling. Short selling is a strategy where traders profit from a decline in the price of an asset, often a stock. In a short sale, investors borrow shares of a stock they believe will fall in value, sell those shares in the open market, and later buy them back at a lower price to return to the lender. In his personal note, Anderson wrote that nearly 100 individuals had been charged civilly or criminally by regulators.