Adani stocks soar 5% as Hindenburg closes operations; Adani Ent, Power, Ports lead the charge

Adani Group stocks surged over 5% on Thursday after Hindenburg Research, the short-seller behind the $100 billion Adani shares sell-off, shut down its operations. The news brought relief to investors, causing a rally in several key Adani Group stocks.

Adani Enterprises, Adani Green Energy, and Adani Power each saw gains of 5.5%. Meanwhile, Adani Ports & SEZ, Adani Energy Solutions, and Adani Total Gas stocks rose by more than 4%. Ambuja Cement, ACC, and NDTV also gained up to 4% each in early trade on January 16. However, Adani Wilmar shares remained flat.

Hindenburg Research’s founder, Nathan Anderson, confirmed the closure of the firm. In a note, Anderson revealed that he had decided to “disband” Hindenburg after completing the pipeline of ideas they were working on. He explained that the intensity of the work took a toll on him personally. Anderson expressed that he missed many aspects of life outside his work and referred to Hindenburg as a chapter in his life, not something that defines him.

Hindenburg had published multiple reports against the Adani Group in 2023, accusing the conglomerate of using offshore tax havens improperly. The group denied the accusations. In addition, US prosecutors announced an indictment against Adani Group Chairman Gautam Adani in November, alleging his involvement in a multibillion-dollar bribery and fraud scheme.

The closure of Hindenburg Research comes days after a Republican Congressman requested the Department of Justice to preserve documents related to the investigations into Adani. Anderson, who founded Hindenburg in 2017, highlighted that his firm had shaken powerful entities and led to charges against nearly 100 people, according to regulators.

The saga between Hindenburg and the Adani Group began in January 2023. Hindenburg released a report accusing the group of stock manipulation, accounting fraud, and money laundering through offshore shell companies.

The allegations caused a sharp decline in Adani Group stocks, wiping out a significant portion of its market value. However, the stocks later recovered much of the lost ground, signaling the resilience of the group despite the controversy.

The market responded positively to Hindenburg’s shutdown, pushing Adani Group stocks higher. Investors seemed relieved by the closure, believing it would remove some of the pressure on the group’s companies.