Hindenburg Research Hints at New Report on India After Adani Allegations
Hindenburg Research, a US-based firm, recently posted a cryptic message on social media hinting at a new India-centric report. This comes over a year after the firm accused the Adani Group of insider trading and other stock market violations.
Previous Allegations Against Adani Group
In January 2023, Hindenburg Research published a report alleging financial irregularities by the Adani Group, leading to a significant drop in the company’s stock prices. The Adani Group denied these claims, which included accusations of stock manipulation and fraud.
Impact of the Allegations
The report led to a sharp fall in the shares of various Adani group companies, reportedly amounting to over USD 100 billion. The allegations were published just two days before a USD 2.5 billion public offering by Adani Enterprises.
Claims of Foreign Involvement
In July, senior lawyer and BJP leader Mahesh Jethmalani alleged that US businessman Mark Kingdon, with Chinese links, had commissioned the Hindenburg report. Jethmalani claimed that Kingdon and his associates used Kotak Mahindra Investments Limited to set up a trading account for short-selling Adani shares, profiting at the expense of Indian retail investors.
Government and Legal Responses
Jethmalani called for a government probe into the political voices targeting the Adani Group, suggesting a Chinese connection. The Supreme Court of India has since cleared the Adani Group of the charges after a SEBI report. The court also dismissed a petition for a Special Investigation Team probe into the issue.
Adani Group’s Response
During the Annual General Meeting of Adani Enterprises in June, Group Chairman Gautam Adani addressed the accusations, stating that the company had faced baseless allegations from a foreign short seller. He emphasized that the group had fought back and proved its integrity and strong foundations.
Doubts Revealed
Hindenburg Research -: Hindenburg Research is a company in the United States that investigates and reports on financial issues in big companies.
Adani Group -: Adani Group is a large company in India that works in many areas like energy, resources, and transportation.
financial irregularities -: Financial irregularities mean that there might be some problems or mistakes in how a company handles its money.
stock prices -: Stock prices are the cost of buying a small part of a company. If the price goes down, it means the company might be in trouble.
Mahesh Jethmalani -: Mahesh Jethmalani is a well-known lawyer in India who works on important legal cases.
Mark Kingdon -: Mark Kingdon is a businessman from the United States who was mentioned in the context of the report on Adani.
Supreme Court of India -: The Supreme Court of India is the highest court in the country. It makes important decisions about laws and justice.
Gautam Adani -: Gautam Adani is the chairman and leader of the Adani Group, one of the biggest companies in India.
