Hindenburg Research, the controversial short-selling firm known for its explosive reports, has hinted at another significant investigation targeting an Indian company. On August 10, the firm sent out a cryptic message on X (formerly known as Twitter) that read, “Something big soon India.”
This teaser has sparked widespread speculation, especially given Hindenburg’s notorious history with Indian conglomerates. The last time Hindenburg turned its sights on an Indian company, it was none other than the Adani Group. In January 2023, Hindenburg accused the Adani Group of insider trading and stock market violations, a move that sent shockwaves through the financial world. The report led to a sharp decline in Adani Group’s stock prices, reportedly wiping out over $100 billion in market value. The Adani Group has consistently denied all accusations, dismissing the report as “baseless” and an attempt to tarnish their reputation.
The aftermath of the Hindenburg report on Adani has been far-reaching. In July 2024, Mahesh Jethmalani, a senior lawyer and prominent leader within India’s ruling BJP party, made serious allegations regarding the origins of the Hindenburg report. Jethmalani claimed that the report was commissioned by an American businessman with alleged Chinese connections, specifically naming Mark Kingdon of Kingdon Capital Management LLC. According to Jethmalani, Kingdon and his wife, Anla Cheng, who he referred to as a “spy,” were behind the report, using Kotak Mahindra Investments Limited to establish a trading account for short-selling Adani shares.
These allegations have added a new layer of complexity to the already tangled web of accusations and denials surrounding the Adani-Hindenburg saga. Jethmalani has urged for an investigation into potential links between political critics of Adani and China, suggesting that the Hindenburg report might have been part of a Chinese retaliation for India’s success in winning infrastructure projects, including the Haifa Port.
Something big soon India
— Hindenburg Research (@HindenburgRes) August 10, 2024
In June 2024, during Adani Enterprises’ Annual General Meeting, Group Chairman Gautam Adani addressed the fallout from the Hindenburg report. He stated, “In the face of an unprecedented attack on our integrity and reputation, we fought back and proved that no challenge could weaken the foundations on which your Group has been established.” Adani’s defiant stance has been consistent, emphasizing the group’s resilience and commitment to weathering the storm.
The Supreme Court of India has played a pivotal role in the ongoing saga. Recently, it dismissed a petition seeking a court-monitored investigation into the Adani-Hindenburg affair, following a report by the Securities and Exchange Board of India (SEBI). This decision has been a crucial development in the legal battles surrounding the issue, reflecting the complex and high-stakes nature of the case.
As the dust settles from the previous Hindenburg report, all eyes are now on what the short-seller might reveal next. The cryptic message on X has left many wondering which Indian company might be in Hindenburg’s crosshairs this time, and what kind of impact the forthcoming report could have on India’s corporate landscape. With Hindenburg’s track record, whatever comes next is likely to send ripples through the market.
The timing of this new hint is particularly intriguing, given the ongoing legal and political maneuvers in the aftermath of the Adani report. The potential for another explosive revelation has left investors, companies, and policymakers on edge, as they await the next move from one of the most talked-about short-sellers in the world.
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