Adani Group, Hindenburg News : ‘Something big soon India’

More than a year after Hindenburg Research, a US-based investment firm, published a report accusing the Adani Group of engaging in “insider trading” and other stock market violations, the firm has hinted at the release of another significant report focused on India. The earlier report had alleged that the Adani Group was involved in financial misconduct, including artificially inflating its stock prices, leading to a dramatic decline in the value of Adani’s shares, with losses reportedly exceeding USD 100 billion. These accusations, though strongly denied by the Adani Group, had a profound impact on the market.

In 2023, following the release of Hindenburg’s report, the shares of various Adani companies saw a significant drop, contributing to a loss of over USD 100 billion. The report, released just two days before Adani Enterprises launched a USD 2.5 billion public offering, was seen as a strategic move by the short seller. In response, the Adani Group denied all allegations and claimed that the report was an intentional effort to destabilize the company and tarnish the reputation of the Indian government.

The controversy surrounding the report intensified when senior lawyer and BJP leader Mahesh Jethmalani alleged that the report had been commissioned by a US-based businessman with ties to China. He claimed that Mark Kingdon, the American businessman behind Kingdon Capital Management LLC, had engaged Hindenburg Research to target the Adani Group for financial gain, using a trading account set up with Kotak Mahindra Investments Limited (KMIL) for short-selling Adani shares.

Despite the accusations, the Supreme Court of India cleared the Adani Group of any wrongdoing as stated in the Hindenburg report, ruling that the matter fell within the purview of the regulatory regime and that the report could not serve as the basis for a separate investigation. The court also dismissed a petition for the establishment of a Special Investigation Team (SIT) to probe the allegations further.

Gautam Adani, the chairman of the Adani Group, has continued to assert that the Hindenburg report was a calculated attack aimed at destabilizing his company. At the Annual General Meeting of Adani Enterprises in June, he addressed the shareholders, stating that despite facing an unprecedented assault on their integrity, the Adani Group had demonstrated resilience and emerged stronger.

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