Who Will Hindenburg Target Next? The US Short Seller Hints at Another Big India Reveal

Hindenburg Research, the US short-selling firm known for its bombshell report on the Adani Group last year, has hinted at another major revelation involving India. On Saturday, the firm posted on X (formerly known as Twitter), saying, “Something big soon India.”

Back on January 24 of the previous year, Hindenburg released a report sharply criticizing the Adani Group, just before the planned share sale of Adani Enterprises. The report triggered an $86 billion drop in the market value of Adani Group stocks and led to a significant sell-off of its overseas bonds.

Something big soon India

— Hindenburg Research (@HindenburgRes) August 10, 2024

The Hindenburg report accused the conglomerate of stock manipulation and fraud. These allegations led to a sharp decline in the shares of various Adani group companies, reportedly wiping out over $100 billion in value. The report was published just two days before Adani Enterprises issued a $2.5 billion follow-up public offering.

The Adani group has consistently denied all accusations made in the Hindenburg report.

In July this year, Mahesh Jethmalani, a senior lawyer in India and a BJP leader, claimed that a US-based businessman with ties to China had commissioned the Hindenburg report, which caused the significant drop in Adani group shares in early 2023.

Jethmalani alleged that Mark Kingdon, the American businessman behind Kingdon Capital Management LLC, had hired Hindenburg Research to prepare the report on the Adani Group. He also accused Anla Cheng, whom he labeled a “spy,” and her husband Mark Kingdon, of using Kotak Mahindra Investments Limited (KMIL) to set up a trading account for short-selling Adani shares and making millions in profit at the expense of Indian retail investors.

Jethmalani has also urged the Indian government to investigate the links between those who targeted the Adani Group after the Hindenburg report and China. He suggested that the report was part of Chinese retaliation for losing out on infrastructure projects like the Haifa Port.

Earlier, the Supreme Court of India cleared the Adani Group of the charges made in the Hindenburg report following an investigation by SEBI. Recently, the apex court dismissed a petition seeking a court-monitored Special Investigation Team (SIT) probe into the Adani-Hindenburg issue.

In June, during the Annual General Meeting (AGM) of Adani Enterprises, Group Chairman Gautam Adani addressed the accusations, calling them “baseless” and made by a “foreign short seller.” He assured shareholders that the group had fought back and proved that no challenge could weaken its foundations.