Hindenburg saga: How 'Operation Zeppelin' helped Adani Group make boldest comeback in corporate history

New Delhi, April 22: Hindenburg Research, which formally announced it was shutting down its operations in January this year after making a scathing yet failed attack on the Adani Group, faced a bold comeback by one of India's largest conglomerates, which involved a clandestine investigation to uncover the inner workings of the research firm and expose those backing it.

In January 2023, the forensic financial firm published a scathing report describing the Adani Group as "the largest con in corporate history".

The attack wiped out more than $150 billion in the Group’s market value, leading it to scrap its biggest public offering.

The Hindenburg report came out just days before Adani Group Chairman Gautam Adani was in Israel to finalise a $1.2-billion deal to acquire the Haifa seaport. The winning bid came from a joint venture between Gadot Masofim for Chemicals Ltd and Adani Ports and Special Economic Zone Ltd, with the Indian firm holding the majority stake.

The bids, evaluations, and clearances for the privatisation of Haifa Port had taken 18 long months -- and Israeli Prime Minister Benjamin Netanyahu was present at the signing on January 31, 2023.

As Hindenburg’s scathing report about the Group came out, a top Israeli leader questioned Gautam Adani about the allegations, to which the Indian billionaire firmly responded that they were "absolute lies".

According to people close to the matter, the Group staged a strong comeback against Hindenburg by launching "Operation Zeppelin", believed to have involved assistance from an Israeli intelligence agency.

The effort involved a mix of public relations, legal manoeuvres, and strategic tactics to counter the fallout and restore investor confidence.

"Operation Zeppelin" was named after the German dirigible airships used for reconnaissance and bombing during the First World War.

People within the Israeli establishment viewed the Hindenburg report as a deliberate attempt to undermine the Haifa port deal, according to sources.

The deal was viewed as strategically vital for the India-Middle East-Europe Economic Corridor.

While the Adani Group refocused attention on the group's core businesses after the Hinderburg report, "Operation Zeppelin" continued to work clandestinely.

According to sources, former intelligence insiders were able to connect the dots as they stumbled upon a complex web of activist lawyers, journalists, hedge funds, and political figures -- some allegedly connected to Chinese interests, others to Washington power brokers.

Gautam Adani was briefed about the covert operation during his private visit to Switzerland in January 2024, according to people aware of the matter.

In Ahmedabad, a team of attorneys and intelligence consultants worked alongside the ones during surveillance in the US. A high-tech control room was set up with cyber experts and analysts and legal teams worked across international capitals.

In 2024, leaked documents purportedly showed links between US agencies and media platforms that were pushing anti-Adani narratives.

Last November, the US Department of Justice and the Securities and Exchange Commission (SEC) charged key Adani key executives with being part of an alleged bribery scheme to secure renewable power supply contracts in India.

The Adani Group rubbished all allegations.

Simultaneously, the Adani Group prepared to launch legal proceedings against Hindenburg Research and its founder, Nathan Anderson, and a legal notice was sent. A meeting between the Adani Group's legal team and Hindenburg officials was also proposed, but it wasn't clear if the meeting took place.

On January 15, Hindenburg Research announced it was winding up. The decision to abruptly close down operations took many by surprise, particularly due to its timing -- just three days before Donald Trump’s inauguration as the next US President.

Substantial evidence later began to emerge against the controversial short-seller Hindenburg Research and its founder, Anderson, in a court battle in Canada's Ontario, exposing Hindenburg's secret ties, and potential securities fraud and faulty disclosures made by the firm and the founder, according to media reports.

Reader Comments

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Rahul P.

This is such an inspiring comeback story! Adani Group showed real resilience against what appears to be a coordinated attack. The "Operation Zeppelin" details are fascinating - corporate warfare at its finest 👏

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Priya K.

While I admire the strategic response, I wish corporations didn't need to engage in such cloak-and-dagger operations just to defend their reputation. The whole situation raises questions about how vulnerable our markets are to these kinds of attacks.

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Amit S.

The geopolitical angles here are mind-blowing! China connections, Washington power brokers, Israeli intelligence... reads like a spy novel. Makes you wonder how many other corporate battles have these hidden dimensions 🤔

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Neha T.

Respectful criticism: The article seems very one-sided. While Hindenburg may have been wrong, we should also examine why Adani Group was so vulnerable to these allegations in the first place. Strong companies don't lose $150B in value overnight.

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Sanjay M.

The timing around Trump's inauguration is SUSPICIOUS! These short-seller firms play dirty. Glad Adani fought back - this sets an important precedent for other Indian companies facing similar attacks. 🇮🇳

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Meera J.

As someone who lost money during the initial crash, I'm relieved but still cautious. The article mentions "leaked documents" - would be great to see more transparency about these findings. Hope the truth comes out fully!

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