Hindenburg Research founder Nathan Anderson has spoken publicly for the first time about why his US-based short-selling firm investigated the Adani Group. In an interview with a news agency, Anderson revealed that the decision stemmed from red flags raised by certain media groups.
Hindenburg’s Investigation into Adani Group
Anderson confirmed that the January 2023 Hindenburg Report — which accused Adani Group of using offshore entities to inflate revenue, manipulate stock prices, and amass debt — was triggered by media reports. “We initially saw media articles outlining red flags, took a closer look, and just kept following the evidence,” he stated.
The report led to a sharp decline in Adani Group’s stock prices, wiping out over USD 150 billion from its market value. However, over time, the conglomerate recovered a substantial portion of its losses.
Rejecting Allegations of Anti-India Sentiment
Addressing claims that Hindenburg’s report was an attack on India’s economic growth, Anderson rejected the accusations. “We have always believed in India’s potential and view market transparency and strong corporate governance as key factors that can fuel India’s growth story,” he said.
Adani Group denied all allegations, calling the report a deliberate attempt to damage its reputation. The issue reached the Supreme Court of India, which ruled that no further investigation beyond SEBI’s ongoing probe was necessary.
Hindenburg’s Closure Not Due to Threats
In January 2024, Anderson announced Hindenburg Research’s closure, clarifying that the decision was due to workload rather than any legal or personal threats. “As to why I retired, it is all in the letter. It is not based on any threat, health issue, personal issue, or otherwise,” he explained.
Many questioned why Anderson did not hand over operations to another leader, to which he responded, “Hindenburg is basically synonymous with me. If it were a software application or a bicycle factory, you could sell it. But when it’s research driven by me, you can’t really just hand that off.”
Addressing Conspiracy Theories
Anderson dismissed claims linking Hindenburg with alleged anti-India groups, such as OCCRP and George Soros, calling them “goofy conspiracies.” He stated, “When the main response to 100+ pages of evidence is a goofy conspiracy, we view it as a sign that we were right on the mark.”
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Despite shutting down Hindenburg, Anderson reaffirmed that all its reports, including the Adani report, were accurate. “We 100 per cent stand by all of our research findings,” he said. He also hinted that his former team might continue working under a new brand. “I am happy to support the team if they want to launch a new brand, which I expect they will,” he added.
Regulatory Scrutiny and Business Model
Responding to questions about Indian regulatory bodies’ reactions to Hindenburg’s reports, Anderson stated, “We view our role as researching and writing about issues in need of transparency. The rest is out of our hands.”
He also dismissed allegations that Hindenburg shared reports with hedge funds, clarifying, “We have always maintained full editorial control over all of our research.” He added that Hindenburg’s business model—investing its own capital and working with a balance sheet partner—is standard practice in the short-selling industry and fully compliant with legal regulations.
As Hindenburg closes its doors, the impact of its investigations continues to reverberate, raising questions about corporate governance and financial transparency worldwide.
