US-based firm Hindenburg Research has sparked speculation by posting a cryptic message on its social media account, hinting at a forthcoming India-centric report.
The post on 'X' stated, "Something big soon India," raising questions about the firm's next move.
This teaser comes over a year after Hindenburg released a damning report in January 2023, accusing the Adani Group of financial irregularities, including insider trading and stock market violations. The allegations led to a significant drop in the conglomerate's stock value, wiping out over USD 100 billion in market capitalization. Despite these claims, the Adani Group has consistently denied any wrongdoing.
The January 2023 report, which surfaced just two days before Adani Enterprises launched a USD 2.5 billion follow-up public offering, alleged stock manipulation and fraud. The fallout was immediate and severe, with shares of various Adani companies plummeting.
In July this year, senior BJP leader and lawyer Mahesh Jethmalani alleged that the report was commissioned by a US-based businessman with ties to China, Mark Kingdon of Kingdon Capital Management LLC. Jethmalani claimed that Kingdon, along with his wife Anla Cheng, orchestrated the report to manipulate Adani shares for profit.
He further alleged that Kotak Mahindra Investments Limited (KMIL) was used to facilitate short-selling of the shares.
Jethmalani has urged the Indian government to investigate the links between political figures who criticized the Adani Group after the Hindenburg report and potential Chinese involvement. He suggested that the report was part of a broader strategy of Chinese retaliation after losing out on infrastructure projects like the Haifa Port.
Despite these allegations, the Supreme Court of India has cleared the Adani Group of wrongdoing, following a report by the Securities and Exchange Board of India (SEBI). The court recently dismissed a petition seeking a Special Investigation Team (SIT) probe into the Adani-Hindenburg matter.
In June 2024, during the Annual General Meeting of Adani Enterprises, Group Chairman Gautam Adani addressed the controversy, describing the accusations as "baseless" and emphasizing the resilience of the Group in the face of what he termed an "unprecedented attack" on its integrity and reputation.
