Adani business thrives a year after Hindenburg episode

A year following Hindenburg Research’s damning report , which accused the Adani Group of fraud and stock manipulation, billionaire Gautam Adani appears to have turned adversity into an opportunity, as the conglomerate strengthens its business fundamentals despite the allegations it denies.

His ports-to-power empire has trimmed debt, pared founders’ share pledges, won new backers from the US to the Middle East, bagged landmark projects and begun to communicate more often with investors and lenders. It’s helping ferry a rising number of air passengers and cargo containers. It’s also building a new airport for India’s financial capital, Mumbai, and redeveloping the city’s sprawling Dharavi slum.  Fallout from Hindenburg’s report still lingers. While Adani stocks have risen more than $90 billion from last year’s low, they remain about $60 billion short of their preHindenburg peak. Meanwhile, most of the group’s dollar bonds have recouped their losses. 

Critics including opposition political parties have continued to raise questions about a perceived closeness to Prime Minister Narendra Modi, as well as a complex web of opaque offshore firms. The auditor for the group’s ports business resigned last year, adding to questions around its accounting practices. Adani Group representatives didn’t respond to requests for comment. The conglomerate has said it complies with all laws and follows all accounting rules, while the billionaire has said that his firms don’t receive preferential treatment from the government.