In January 2023, Hindenburg had accused the Adani Group of irregularities. After this, the shares of Adani Group hit a lower circuit for several days continuously. Now on Sunday, Hindenburg again released a report in which it has accused Madhabi Puri Buch, the current chairman of Securities Market Regulator SEBI in India, and her husband Dhawal Buch of financial irregularities.
However, after this, the SEBI chief and the Adani Group issued a statement on this and both rejected this report outright. Even when the market opened on Monday, it recovered after a slight decline. Now let us tell you in this article about those five big companies on which Hindenburg released its report and their shares fell flat.
Which are those 5 big companies
Adani Group: Adani Group shares witnessed a massive drop following the Hindenburg report, leading to a massive reduction in the company’s market capitalisation.
Dorsey Square Inc.: Hindenburg made serious allegations against this company in its report, due to which its shares recorded a huge decline.
Nikola Motors: Hindenburg had accused Nikola Motors of fraud, after which its shares were badly affected.
Lordstown Motors: Many questions were raised against this company in the Hindenburg report. After the release of this report, not only did the company’s shares fall, but the company’s credibility and investors’ confidence also declined.
Block Inc.: In its report against this company, Hindenburg had questioned the company’s business model and management. Due to this, there was a huge decline in the shares of Block Inc.
What is Hindenburg?
According to the BBC report, Hindenburg Research has been working since 2017. It claims that since 2017, it has released reports on about 16 companies in the US and abroad and exposed the financial irregularities going on in them. Whereas, a Bloomberg report claims that since 2020, Hindenburg has released research reports on 30 companies. The biggest thing is that the very next day after the release of the report, the shares of these companies fell by an average of 15 percent.
