After Adani, Hindenburg Research Hints at Another India-Centric Expose; What’s Brewing Now?

Hindenburg Research: A possible new report focused on India may have been hinted at by a mysterious tweet recently issued by US-based Hindenburg Research. This occurs more than a year after the company shocked the Indian financial industry by revealing severe claims that it had found the Adani Group guilty of insider trading and violating market regulations. Hindenburg’s X (formerly Twitter) account tweeted that , “Something big soon India,” which raised questions and concern.

Hindenburg’s Allegations Against Adani

Something big soon India— Hindenburg Research (@HindenburgRes) August 10, 2024

A comprehensive analysis by Hindenburg Research, which was published back in January 2023, accused the Adani Group of financial misconduct, including fraud and stock manipulation. The stock values of several Adani companies fell precipitously as a result of these allegations, and losses are said to have exceeded $100 billion. The report’s release date, which was only two days before Adani Enterprises was scheduled to begin a USD 2.5 billion follow-up public offering, was especially contentious. But the Adani Group has continuously refuted every accusation, calling the study baseless.

Mahesh Jethmalani’s Allegations

A US-based businessman with connections to China allegedly commissioned the Hindenburg study, according to BJP leader and senior lawyer Mahesh Jethmalani, adding a new dimension to the ongoing drama. According to Jethmalani, Hindenburg was engaged by Mark Kingdon, the head of Kingdon Capital Management LLC, to attack the Adani Group. In addition, he claimed that Kotak Mahindra Investments Limited (KMIL) was utilised to open a trading account for the purpose of short selling Adani shares, thereby making money off of Indian retail investors.

Concerns have also been expressed by Jethmalani on the possible involvement of some political individuals who, in his view, may have ties to China and who were outspoken in their criticism of the Adani Group following the Hindenburg report. He speculated that China may have attacked the Adani Group in revenge for missing out on infrastructure projects, such as the Haifa Port agreement.

Supreme Court’s Stand on the Matter

This issue has also involved the Indian judiciary. The Adani Group was cleared of the claims brought by Hindenburg Research by the Supreme Court of India following its examination of a report by SEBI (Securities and Exchange Board of India). The petition for a Special Investigation Team (SIT) investigation into the Adani-Hindenburg controversy was dismissed by the supreme court, so resolving the matter legally.

Gautam Adani’s Response

At the company’s June Annual General Meeting (AGM), Adani Group chairman Gautam Adani spoke on the matter in the midst of all the accusations and court battles. He stressed that the group’s integrity and reputation held firm in the face of the extraordinary attack and called the claims “baseless.” Adani gave stakeholders confidence that the group has solid foundations and has persevered through difficult times.

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