The Hindenburg report, which became a curse for industrial giant Gautam Adani’s companies in India, severely impacted the Indian economy. The position of Adani, which was ranked third among the world’s wealthiest people, has been reduced to the seventh position. With this report, in just two trading sessions, the loss that stumped the Indian stock markets rose by Rs 10 Lakh crore. In just four days, the value of Adani Group’s shares has evaporated by more than four lakh crores.
The Hindenburg Research Institute operates out of New York. This company was created in 2017 by Nathan Anderson. Its job is to uncover financial frauds, tax evasion, manipulations, dodgy companies, and other frauds carried out by big business companies worldwide. This company also invests in short selling. Every transaction in the stock market involves buying first and then selling it, or selling first and then buying it. The Adani Group thinks that the second method is better if it can buy shares and sell them after their value increases. Buying shares at a low price and then selling them at a higher price will give you good profits. This second method is called short selling.
It is unbelievable that Nathan Anderson, who received a degree in international trade from Connecticut University in America, once worked as an ambulance driver in Jerusalem, the capital of Israel. But his education made him come back to America. He worked in a software company called Fact Set. Harry had already investigated a fraud by the Platinum Partners company with a man named Marco Polus. After that, he established the Hindenburg Research Institute. In 2020, he targeted Nicola Corporation in America. The company’s stock fell 40 percent after the scandals came to light. Since 2017, Hindenburg has exposed a total of 16 companies’ frauds.
The German passenger airship Hindenburg crashed on May 6, 1937, in Manchester Township, New Jersey, killing 35 people. 62 people were rescued by rescue teams. Explaining the reason for giving this name to his company, Anderson said that it was a man-made disaster, and 100 people were put in a balloon filled with flammable hydrogen. On 10 scheduled trips between Germany and America, this airship carried 1,002 passengers. At one point, the balloon caught fire and burst into flames.