August 10, 2024
New Delhi, India
Who Is Hindenburg Reseach New Target!?
Hindenburg Research, the U.S.-based short-selling firm known for its explosive reports, has once again turned its attention to India. On August 10, 2024, the firm posted a cryptic message on X (formerly known as Twitter), hinting at a major new revelation. The post, stating simply “Something big soon India,” has ignited widespread speculation about which Indian company or conglomerate might be the next target after the high-profile Adani Group.
The Adani Saga: This latest hint from Hindenburg comes more than a year after the firm released its damaging report on the Adani Group, one of India’s largest and most influential conglomerates. On January 24, 2023, Hindenburg accused the Adani Group of engaging in stock manipulation and fraud. The report, released just days before a planned share sale by Adani Enterprises, led to an $86 billion loss in the market value of Adani’s stocks and sparked a massive sell-off of its overseas listed bonds.
The fallout was swift and severe. Adani Group’s shares plummeted, wiping out more than $100 billion in value across its various companies. Despite the group’s strong denials of the allegations, the damage had already been done. The report also brought increased scrutiny from both domestic and international investors, as well as regulatory bodies.
Allegations and Counterclaims: The controversy surrounding the Adani Group deepened in July 2024, when Mahesh Jethmalani, a prominent Indian lawyer and BJP leader, made startling claims about the origins of the Hindenburg report. Jethmalani alleged that the report was commissioned by Mark Kingdon, an American businessman with alleged Chinese connections. According to Jethmalani, Kingdon hired Hindenburg Research to target the Adani Group in retaliation for losing out on key infrastructure projects in India, including the Haifa Port.
Jethmalani’s claims went even further. He accused “spy” Anla Cheng and her husband Mark Kingdon of being instrumental in creating the report. He also suggested that Kotak Mahindra Investments Limited (KMIL) was used to set up a trading account for short-selling Adani shares, enabling those behind the report to profit at the expense of Indian retail investors.
In response to these allegations, Jethmalani called for a thorough investigation into potential links between those who criticized Adani after the Hindenburg report and Chinese interests. He suggested that the report was part of a broader strategy by China to undermine Indian business interests.
Supreme Court and SEBI’s Findings: The Adani Group has consistently denied all allegations made in the Hindenburg report, and the Indian legal system has been involved in examining the claims. The Supreme Court of India, after reviewing a report from the Securities and Exchange Board of India (SEBI), dismissed a petition calling for a court-monitored Special Investigation Team (SIT) to probe the Adani-Hindenburg issue. This decision was seen by some as a vindication of the Adani Group, although the court’s ruling did little to quell the controversy.
Gautam Adani’s Response: Amidst the ongoing turmoil, Gautam Adani, chairman of Adani Enterprises, addressed the allegations during the company’s Annual General Meeting in June 2024. Adani described the accusations as an “unprecedented attack” on the group’s integrity and reputation. He assured shareholders and the public that the group had fought back against these challenges and had proven that its foundations were strong and resilient.
Addressing the allegations at Adani Enterprises’ Annual General Meeting in June, Group Chairman Gautam Adani 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.”
What’s Next? With Hindenburg Research now hinting at another “big” reveal involving an Indian entity, speculation is rife about which company might be the target. The firm’s cryptic message has already caused ripples in the Indian financial markets, with investors bracing for potential volatility.
Given the impact of the Hindenburg report on the Adani Group, the mere suggestion of another report has the potential to cause significant market movements. Investors and market analysts are closely monitoring the situation, waiting to see whether Hindenburg will indeed follow through with a new report and which company might be in its crosshairs.
Hindenburg Research’s latest hint at a major revelation in India has once again put the spotlight on the firm and its controversial reports. As the Indian market awaits further details, the question on everyone’s mind is: who could be the next target? The coming days are likely to be crucial for investors and companies alike as they prepare for the potential fallout of another Hindenburg investigation.
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