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Hindenburg Research, the U.S.-based short seller known for its impactful exposés, has hinted at a forthcoming significant disclosure involving India. This announcement has stirred curiosity, particularly after the firm’s high-profile report last year targeting the Adani Group, which sent shockwaves through financial markets.
In January 2023, Hindenburg issued a scathing report accusing the Adani Group of executing “the largest con in corporate history.” The report’s release, which came just ahead of Adani Enterprises’ planned share sale, triggered a substantial sell-off in the group’s stocks, erasing about $86 billion in market value. The allegations also sparked a significant sell-off of the group’s bonds listed overseas.
In June 2024, the Securities and Exchange Board of India (SEBI) disclosed fresh details in the ongoing Adani-Hindenburg case, highlighting connections between Hindenburg Research and New York hedge fund manager Mark Kingdon. SEBI claimed that Hindenburg had shared an advance copy of its Adani report with Kingdon two months before its public release, enabling strategic trading and substantial profits.
In response, Hindenburg dismissed SEBI’s accusations as “nonsense,” arguing that the notice served a “pre-ordained purpose” of silencing and intimidating those who expose corruption and fraud in India. The firm also explicitly mentioned Kotak Bank in its report for the first time, adding another layer to the ongoing controversy.
Hindenburg Research, founded in 2017 by Nathan Anderson, has built a reputation for targeting major corporations after conducting detailed investigations. Although it is a relatively small firm with roughly 10 employees, Hindenburg has earned a reputation as a short-selling “David” challenging corporate “Goliaths.”