Hindenburg Research teases another 'big' disclosure involving India
Hindenburg Research, a US-based short-selling firm renowned for its investigative exposes, has hinted at an impending significant disclosure related to India. The firm posted a cryptic message on X today, stating, "Something big soon India," sparking widespread speculation about its next potential target. This announcement comes in the wake of the firm's controversial report on the Adani Group last year.
Hindenburg's report on Adani Group led to significant market impact
Hindenburg Research gained notoriety in January 2023, following its report accusing Adani Group of orchestrating "the largest con in corporate history." The timing of this report, just before a planned share sale by Adani Enterprises, led to a significant drop in the group's stock prices. This resulted in an estimated $86 billion loss in market capitalization, and triggered a substantial sell-off of the group's overseas-listed bonds.
SEBI reveals connection between Hindenburg and NY hedge fund manager
In June this year, the Securities and Exchange Board of India (SEBI) disclosed a connection between Hindenburg Research and New York hedge fund manager Mark Kingdon. SEBI alleged that Hindenburg had shared an advance copy of its Adani report with Kingdon around two months before its public release, potentially enabling significant profits through strategic trading. However, Hindenburg dismissed these allegations as "nonsense," claiming they were part of an effort to silence those exposing corruption in India.
Hindenburg names Kotak Bank in report
In its report, Hindenburg Research named Kotak Bank for the first time, adding a new dimension to the ongoing controversy. This development followed allegations made by senior lawyer Mahesh Jethmalani in July. Jethmalani claimed that Kingdon had ties with China and had commissioned the report on Adani Group. He alleged that Kingdon used Kotak Mahindra Investments Limited (KMIL), to set up a trading account for short-selling Adani stocks, thereby profiting millions at the expense of Indian retail investors.
Supreme Court clears Adani Group
In January this year, the Supreme Court of India cleared Adani Group of the allegations made in the Hindenburg report. The court instructed SEBI to continue its investigation as per law, and dismissed a review petition seeking a court-monitored Special Investigation Team (SIT) to probe into the Adani-Hindenburg matter.
