'Something big soon India': Hindenburg message raises eyebrows

News Network
August 10, 2024

Hindenburg Research, the entity which shorted Adani stocks and led to a massive crash in the conglomerate's market value, has posted a cryptic message on social media platform X, wherein it said, "Something big soon India".

Their post has already started garnering a lot of attention, with many X users slamming the short seller based on the recent Sebi show cause notice to the firm regarding the Adani issue.

"Tool kit activated to distract more from Bangladesh," one user commented.

"Like the actual Hindenburg, I find your India coverage to be mostly hot air," another said.

Adani Enterprises had decided not to proceed with a debut retail bond offering of up to Rs 1000 crore last year after US-based short-seller Hindenburg Research accused the group of improper use of offshore tax havens and stock manipulation.

Adani Group denied Hindenburg's allegations, but shares of its group companies lost more than $100 billion in value before recovering in late 2023.

Hindenburg Research had shared an advance copy of its damning report against Adani group with New York-based hedge fund manager Mark Kingdon about two months before publishing it and profited from a deal to share spoils from share price movement, according to market regulator Sebi.

The Securities and Exchange Board of India (Sebi), in its 46-page show cause notice to Hindenburg, detailed how the US short seller, the New York hedge fund and a broker tied to Kotak Mahindra Bank benefited from the over $150 billion routs in the market value of Adani group's 10 listed firms post-publication of the report.

Sebi charged Hindenburg of making "unfair" profits from "collusion" to use "non-public" and "misleading" information and induce "panic selling" in Adani Group stocks.

Hindenburg, which made public the Sebi notice, in its response, has described the show cause as an attempt to "silence and intimidate those who expose corruption and fraud perpetrated by the most powerful individuals in India" and revealed that the vehicle used to bet against Adani's flagship firm Adani Enterprises Ltd belonged to Kotak Mahindra (International) Ltd, a Mauritius-based subsidiary of Kotak Mahindra Bank Ltd. 

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