Hindenburg Research, the US-based short-seller that caused significant losses for investors with its report on the Adani Group, has announced the release of another major report. While no specific details have been shared, the short-seller has described the upcoming report as “another big one”
“New report soon — another big one,” said Hindenburg in a tweet.
New report soon—another big one.
— Hindenburg Research (@HindenburgRes) March 22, 2023
Hindenburg Research, a US-based short-seller that released a report on the Adani Group, has caused turmoil in the Indian markets. The report alleged the conglomerate engaged in stock manipulation, accounting fraud, and other financial misdeeds. It also accused Gautam Adani’s brother, Gautam Adani, of running a network of shell entities, and raised questions about Vinod Adani’s role in the company’s deals and entities.
Gautam Adani and the group’s CFO, Jugeshinder Singh, issued a 413-page response to the allegations, but it did not salvage the situation. Days before the fully-subscribed follow-on public offering (FPO), the report caused the conglomerate to withdraw the issue. Adani’s fortune fell to around $53 billion from $150 billion in September 2022, causing losses of over $120 billion for the company.
To repair investor confidence, the Adani Group held roadshows in Singapore, Hong Kong, Dubai, London, and several US cities, with Jugeshinder Singh in attendance. However, the group also received its first significant investment of Rs 15,446 crore from US boutique investment firm GQG Partners, which bought shares in four Adani Group companies, including Adani Ports and Special Economic Zone, Adani Green Energy, Adani Enterprises, and Adani Transmission, after Hindenburg’s report.
