Hindenburg to release new report, 'another big one,' it says

US-based short-seller Hindenburg Research that released the damning report on the Adani Group, that led to a wipe-out of billions of dollars of investors money, is coming up with a new report. Without sharing any details, the short-seller said that the new report is "another big one".

"New report soon -- another big one," said Hindenburg in a tweet.

The last Hindenburg report – on Adani Group – pushed the Indian markets into a state of turmoil. The short-seller levelled allegations of stock manipulation, accounting fraud and other financial misdeeds on the conglomerate.

Hindenburg had also accused Gautam Adani’s brother, Gautam Adani of running a network of shell entities. It also questioned Vinod Adani’s role in the company, its deals and entities.

Gautam Adani and the group CFO Jugeshinder Singh swept in to damage-control. They issued a 413-page response to the allegations but that did little to salvage the situation. The conglomerate had to withdraw its fully-subscribed follow-on public offering (FPO) after the report that was released days before the issue.

Adani’s fortunes plummeted to around $53 billion from $150 billion in September 2022. He had moved within the ranks of the richest individuals in the world and had reached the third spot. Adani had also become the second-richest man for a while. The company, on the other hand, suffered losses of over $120 billion.

The Adani Group held roadshows in Singapore, Hong Kong, Dubai, London and several cities in the US in February-end and beginning of March. The roadshows, attended by Jugeshinder Singh, were attempts at firefighting as the group aimed to shore up investor confidence.

Meanwhile, Adani Group also saw its first major investment after Hindenburg’s report from US boutique investment firm, GQG Partners, bought shares worth Rs 15,446 crore in four Adani Group companies, including Adani Ports and Special Economic Zone, Adani Green Energy, Adani Enterprises and Adani Transmission.

Also read: Adani-Hindenburg row: S&P says future ratings action on Adani Group will depend on THESE parameters