NEW DELHI: Hindenburg Research, a US-based firm, has recently teased a potential new report focused on India, stirring up intrigue more than a year after leveling accusations against the Adani group of companies, alleging insider trading and other stock market violations.
The mysterious message, shared on the company’s social media account, simply reads, “Something big soon India.”
In January 2023, Hindenburg’s report alleged financial irregularities within the Adani Group, causing a significant drop in the company’s stock price. The conglomerate denied these claims at the time.
The report specifically accused the group of stock manipulation and fraud, resulting in a sharp decline in the shares of various Adani group companies, reportedly leading to over USD 100 billion in losses. The US short seller’s report was released just two days before Adani Enterprises issued a $2.5 billion follow-up public offering.
Senior Indian lawyer and BJP leader Mahesh Jethmalani alleged in July 2023 that Mark Kingdon, a US-based businessman with Chinese ties, had commissioned the Hindenburg Research report. Jethmalani claimed that Kingdon and his wife Anla Cheng hired Hindenburg Research to prepare the report on the Adani Group and used Kotak Mahindra Investments Limited (KMIL) to set up a trading account for short-selling Adani shares, making millions in profits at the expense of Indian retail investors.
Jethmalani also urged the government to investigate the connections between political figures targeting the Adani group post the Hindenburg report and China, insinuating that the hit job on the Adani group was Chinese retaliation for losing out on infrastructure projects like the Haifa Port.
The Supreme Court has exonerated the Adani group regarding the Hindenburg charges based on a report by the Securities and Exchange Board of India (SEBI). The apex court also recently rejected a review petition to establish a court-monitored Special Investigation Team (SIT) probe into the Adani-Hindenburg matter.
During the Annual General Meeting (AGM) of Adani Enterprises in June 2023, Group Chairman Gautam Adani addressed the allegations, stating, “We were faced with baseless accusations made by a foreign short seller, that questioned our decades of hard work.”
