Adani Group Plunges After Report of Stock Manipulation and Fraud Allegations

Gautam Adani, the billionaire chairman of the Adani Group, has experienced a rapid decline in his wealth in recent weeks.[0] Adani was the world’s third-richest person at the start of the year, with a net worth of $150 billion.[1] However, that has now been halved to $61.3 billion after a short-seller report accused Adani’s conglomerate of stock manipulation and accounting fraud.

Adani Enterprises, the group’s flagship company, has seen its shares fall by more than 50% since the Hindenburg Research report was published on January 24th.[2] The report accused Adani of overseeing “the largest con in corporate history” and raised questions about the company’s substantial debt.

Following the report, Adani Enterprises was forced to abandon a planned $2.5 billion share sale.[3] In response to the allegations, Adani issued a 413-page statement that called the short-seller’s claims “stale, baseless, and discredited allegations.”[4] The statement also called the report a “calculated attack on India, the independence, integrity, and quality of Indian institutions, and the growth story and ambition of India.”[4]

However, many investors remain unconvinced.[5] According to NYU finance professor Aswath Damodaran, Adani Enterprises’ shares are still overvalued on some metrics.[6] He said, “I still think the company is priced too high, given its fundamentals and before factoring the damage that might have [been] done to the company’s reputation and long term value, by this short selling episode.”[7]

The Adani Group has attempted to restore investor confidence by prepaying $1.11 billion worth of borrowings ahead of their scheduled maturity in September 2024.[8] However, Hindenburg Research responded by saying, “Fraud cannot be obfuscated by nationalism or a bloated response that ignores every key allegation we raised.”[2]

The scandal has sparked a wider discussion about corporate governance in India, and the Reserve Bank of India has said that the banking sector “remains resilient and stable” based on its latest assessment.[5] The Reserve Bank has vowed to continue to monitor the situation.

Hindenburg Research, the company behind the report, is a research firm that focuses on analysing accounting irregularities, undisclosed transactions, illegal/unethical business or financial reporting practices, among other issues.[2]

0. “Adani rout deepens despite soothing words from India’s government and billionaires” CNBC, 6 Feb. 2023,

1. “Gautam Adani Drops Out Of 10 Wealthiest List: Here’s How His Loss Stacks Up To Musk, Zuckerberg And SBF – Meta …” Benzinga, 4 Feb. 2023,

2. “Explained | Adani Group stocks: What is Hindenburg Research, and how does a short seller operate?” The Hindu, 30 Jan. 2023,

3. “Who Got Rich And Who Got Poor This Week: Zuckerberg, Musk, Adani And More” Forbes, 4 Feb. 2023,

4. “What Adani Group’s Downfall Reveals About India’s 1% | Time” TIME, 1 Feb. 2023,

5. “Adani scrambles to reassure creditors as crisis enters third week” CNN, 6 Feb. 2023,

6. “Hindenburg row : NYU professor values Adani Enterprises stock at ₹945 per share” Hindustan Times, 6 Feb. 2023,

7. “Aswath Damodaran values Adani Enterprises stock at ₹947 per share | Mint” Mint, 5 Feb. 2023,

8. “Aswath Damodaran dissects Adani crisis: What’s the fair value of this ‘competent’ infra play?” Moneycontrol, 6 Feb. 2023,