After Adani, Hindenburg hints at another major Indian corporate expose

Hindenburg Research, the short-selling firm known for its critical reports, has posted a cryptic message on X, the social media platform formerly known as Twitter, hinting at a new reveal from India.

The message, posted on Saturday, 10 August, simply read, "Something big soon, India," leaving the financial markets and corporate entities speculating about who or what might be in the crosshairs.

This announcement comes more than a year after Hindenburg's explosive report on the Adani Group in January 2023, which had a devastating impact on the conglomerate.

Just as Adani Enterprises was preparing to launch a share sale, Hindenburg released a scathing critique, accusing the group of engaging in "the largest con in corporate history."

The fallout from that report was severe. Adani Group's market capitalisation plummeted by approximately $86 billion, as stocks across the conglomerate's portfolio suffered massive devaluation.

Additionally, there was a significant sell-off in the group's overseas-listed bonds. Adani Enterprises Ltd (AEL) saw its stock price drop by 59% within a month following the report's release.

The impact of Hindenburg's allegations was not limited to market reactions. The Securities and Exchange Board of India (SEBI) recently revealed new details in the ongoing Adani-Hindenburg saga.

According to SEBI, Hindenburg had provided New York hedge fund manager Mark Kingdon with an advance copy of its report on Adani nearly two months before its public release. This advance notice allegedly allowed Kingdon to profit from strategic share trades, a move that SEBI outlined in a comprehensive 46-page show-cause notice.

The notice detailed a "Research Agreement" between Hindenburg and Kingdon Capital Management, established in May 2021. This development has raised questions about the ethical and legal ramifications of such arrangements in the financial markets.

As the financial world waits with bated breath for Hindenburg's next move, the mere hint of another Indian target has already sent ripples through the market, reminiscent of the chaos that ensued after their Adani report.