Why is hindenburg in talks so much ?
Hindenburg Research LLC is an US based investment research firm , which focuses on short selling . This morning (10 Aug , Saturday IST )their official twitter handle posted , “Something big soon India “. Since then the traders and business men are concerned about what is the “big thing ” that was being referenced to in the post .
Why is Hindenburg that big of a deal ?
Last year on january 24 , Hindenburg posted a report about Adani Group , criticizing Adani Group which led to drop of $86 Billion decline of market cap of Adani Group and loss in stocks of $30 billion or more. It also further triggered selling of Adani’s overseas bonds.
The hindenburg’s last year’s report alleged that Adani had manipulated the stocks and has been part of fraud/s. The report also alleged that the Adani group had inflated its share prices. After the report and allegations were published , the Adani group’s stock prices fell down , which they have not been able to recover till date.
The report was published just 2 days after the Adani Group issued $2.5 billion public offering.
Adani Group has denied all allegations imposed on the company by Hindenburg report.
In July this year , one of the india’s most senior lawyer and BJP leader Mahesh jethmalani claimed that the report was Mark Kingdon, the American businessman behind Kingdon Capital Management LLC, had hired Hindenburg Research to prepare a report on the Adani Group.
He (jethmalani) flagged that the report was backed by chinese which was executed by Mark. He added that the report was vengeance against Adani Group for losing out on infrastructure projects as Haifa Port.
Earlier , even the Supreme Court of India had given clean chit to the Adani Group on Hindenburg’s charges after SEBI’s report on allegations.
In June this year, while addressing the Annual General Meeting (AGM) of Adani Enterprises, Group Chairman Gautam Adani said they were “faced with baseless accusations made by a foreign short seller, that questioned our decades of hard work.”
“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” he told the gathering.
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