New report soon: US short seller Hindenburg Research calls it another big one

New York-based Hindenburg Research, which flagged brazen stock manipulation and improper use of offshore tax havens by the Adani Group, on Thursday has signalled to carry out 'another big' expose.

On March 23, the US short-seller tweeted,''New report soon-another big one.'' The latest tweet has sparked curiosity all over the world, with many wondering if it would be about a Silicon Valley bank. However, one Indian user replied saying 'hopefully', it won't be about another Indian company.

It may be recalled that the Nathan Anderson-founded financial research firm gained more prominence this year after its scathing report on billionaire Gautam Adani's group which reduced its fortune to USD 53 billion from a peak of over USD 150 billion in September 2022.

The report had made a litany of allegations, including fraudulent transactions and share price manipulation at the Gautam Adani-led group. In the report, Hindenburg called out the conglomerate's 'substantial debt', which includes pledging shares for loans; that Adani's brother Vinod 'manages a vast labyrinth of offshore shell entities' that move billions into group companies without required disclosure; and that its auditor 'hardly seems capable of complex audit work'.

However, Adani Group dismissed the charges in its 413-page response on 30 January 2023 as lies, saying it complies with all laws and disclosure requirements.

The Hindenburg report that created a ruckus in the market while the Opposition shifted all its focus to an alleged connection between Adani Group and the Narendra Modi government. Mallikarjun Kharge, the Leader of the Opposition in the Rajya Sabha, claimed in February that Prime Minister Narendra Modi had declined to respond to questions about the Hindenburg-Adani controversy in the legislature.

Meanwhile, the Nathan Anderson-founded financial research firm, didn't provide any other details on the timing of the next report's release, or what it intends to say.

Hindenburg is a research firm that gained notoriety in the financial world for its short selling reports and investigations. Hindenburg is known for publishing reports on publicly traded companies that it believes are overvalued or have engaged in fraudulent activities. It had a track record of pointing out frauds in 17 companies in the past six years.