New Delhi: Over a year after shaking India’s financial markets with its explosive allegations against the Adani Group, US-based Hindenburg Research has hinted at another potentially seismic report centered on India. On Saturday, the notorious short-selling firm shared a cryptic message on X (formerly Twitter), stating, “Something big soon India,” sparking widespread speculation about what could be next for the Indian corporate world.
Hindenburg’s last foray into India’s business landscape made global headlines when it accused the Adani Group of insider trading and other serious violations in January 2023. The fallout from that report was swift and dramatic, with Adani’s shares plummeting in value, though the conglomerate dismissed the claims as unfounded. The impact of the report was profound, leading to intense scrutiny of the Adani Group and contributing to a broader discussion about corporate governance in India.
The aftermath of the Adani report saw Hindenburg revealing that it had earned $4.1 million from gains related to the short-selling of Adani securities on behalf of its clients. The firm acknowledged that these profits were modest when weighed against the extensive costs of producing the research, including a two-year global investigation. In addition, Hindenburg made approximately $31,000 from its short position on Adani’s US bonds, though this was a minor stake.
In June 2023, the Securities and Exchange Board of India (SEBI) added another layer to the ongoing Adani-Hindenburg saga, disclosing new links between Hindenburg Research and New York hedge fund manager Mark Kingdon. These revelations further deepened the intrigue surrounding the initial report and the entities involved.
As the financial world waits with bated breath, the anticipation surrounding Hindenburg’s next move raises questions about which Indian companies might be in the firm’s crosshairs this time. The potential implications for India’s stock markets could be significant, particularly if the report targets another major player in the economy. With a reputation for meticulous research and a history of triggering market volatility, Hindenburg’s latest hint has already set the stage for what could be another chapter in the ongoing scrutiny of Indian corporate giants.
