Hindenburg Research Says 'Something Big Soon India'. Who's Next After Adani Group?

US-based firm Hindenburg Research hinted at a new India-centric report through a cryptic message on their X social media account. The post read, "Something big soon India," leaving people wondering about who will be the next target after the Adani Group.

In January 2023, Hindenburg published a report accusing the Adani Group of financial irregularities, which led to a significant drop in the company's stock price. The report stock manipulation and fraud by the conglomerate, resulting in a sharp fall in shares of various Adani group companies, reportedly amounting to over USD 100 billion.

Allegations and Denials

The Adani Group has consistently denied all accusations made in the Hindenburg Research report. The US short seller's report was released just two days before a USD 2.5 billion follow-up public offering by the company. Despite the denials, the allegations had already caused substantial damage to the company's market value.

In July this year, Mahesh Jethmalani, a senior lawyer and BJP leader, claimed that a US-based businessman with Chinese links had commissioned the Hindenburg report. He alleged that Mark Kingdon of Kingdon Capital Management LLC hired Hindenburg Research to prepare the damaging report on the Adani Group.

Political and Legal Reactions

Jethmalani further alleged that Mark Kingdon and his wife Anla Cheng used Kotak Mahindra Investments Limited (KMIL) to set up a trading account for short-selling Adani shares. This move allegedly allowed them to profit millions at the expense of Indian retail investors. He also called for an investigation into political figures who targeted the Adani Group post-report, suggesting Chinese involvement.

The Supreme Court of India has previously cleared the Adani Group of these charges following SEBI's investigation into the allegations. Recently, the apex court dismissed a review petition seeking a court-monitored Special Investigation Team (SIT) probe into the Adani-Hindenburg issue.

Adani Group's Response

During Adani Enterprises' Annual General Meeting (AGM) in June this year, Group Chairman Gautam Adani addressed these accusations. 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."

Jethmalani also claimed that China's involvement was driven by revenge for losing infrastructure projects like Haifa Port. He urged further investigation into these connections to understand better who might be behind these attacks on Indian companies.

The ongoing developments around Hindenburg Research's activities continue to attract attention. As new reports are anticipated, stakeholders remain vigilant about potential impacts on India's financial markets.