Hindenburg Research, the well-known short-selling firm, has stirred the financial world once again with a cryptic message hinting at a significant upcoming revelation involving an Indian company. On August 10, the firm posted on X (formerly Twitter), stating, “Something big soon India.” This vague but provocative statement has led to widespread speculation about which Indian corporate giant might be in Hindenburg's crosshairs next.
 

Background: The Adani Group Controversy

This latest message comes more than a year after Hindenburg's explosive report on the Adani Group, where the firm accused the conglomerate of insider trading and stock market manipulation. The January 2023 report had a profound impact, wiping out over $100 billion in market value from Adani Group stocks. Despite the severe market reaction, the Adani Group has vehemently denied all the allegations, dismissing Hindenburg's claims as unfounded.
 

New Allegations and Political Fallout

Adding another layer to the ongoing saga, Mahesh Jethmalani, a senior lawyer and BJP leader, recently claimed that an American businessman with Chinese ties might have commissioned the Hindenburg report on Adani. In July, Jethmalani specifically pointed to Mark Kingdon of Kingdon Capital Management LLC as the person behind the report. He alleged that Kingdon, along with his wife Anla Cheng, orchestrated the creation of the report to damage Adani's reputation, supposedly using Kotak Mahindra Investments Limited to set up a trading account for short-selling Adani shares.

Jethmalani has called for an investigation into potential connections between political figures critical of Adani post-Hindenburg report and Chinese interests. He suggested the report might have been a retaliatory move by China after losing infrastructure projects like the Haifa Port.
 

Supreme Court and SEBI Involvement

Despite these allegations, the Supreme Court of India has rejected a petition calling for a court-monitored investigation into the Adani-Hindenburg affair. This decision followed a report from the Securities and Exchange Board of India (SEBI), which did not find sufficient grounds to proceed with such an investigation.
 

Gautam Adani's Response

In response to the ongoing controversy, Adani Group Chairman Gautam Adani addressed shareholders at the company's Annual General Meeting in June. He expressed resilience, stating: “In the face of an unprecedented attack on our integrity and reputation, we fought back and proved that no challenge could weaken the foundations on which your Group has been established.”

Key Points:

• Hindenburg Research has hinted at a new major revelation involving an Indian company with a cryptic message: “Something big soon India.”
• Previous Hindenburg Report (January 2023) targeted the Adani Group, accusing them of insider trading and market manipulation, resulting in over $100 billion in losses for the conglomerate.
• Adani Group has denied all allegations, dismissing Hindenburg's claims as baseless.
• Mahesh Jethmalani, a BJP leader, alleged that Mark Kingdon of Kingdon Capital Management commissioned the Hindenburg report on Adani, potentially with Chinese interests at play.
• Supreme Court of India has dismissed a petition for a court-monitored investigation into the Adani-Hindenburg issue.
• Gautam Adani addressed shareholders, affirming the group's resilience in the face of these challenges.

As the financial community watches closely, the anticipation builds around Hindenburg's next move and which Indian company might find itself under scrutiny.