‘Something big is going to happen in India!’ Hindenburg’s warning, whose turn is it now?

In January 2023, Hindenburg Research released a report targeting Gautam Adani’s Adani Group. This report created a stir because Hindenburg had made many serious allegations against the Adani Group. As soon as the Hindenburg Research report came out, there was a sharp decline in all the shares of Adani Group and Gautam Adani slipped to number 36 after becoming the world’s number 2 billionaire, as a record decline was recorded in his wealth. 

After the report on Adani Group came on 24 January 2023, all the shares fell sharply, after which the valuation of the company also fell sharply. The situation was such that the valuation of Adani Group fell 
by 86 billion dollars in a few days. This huge fall in the share price later led to a huge sale of the group’s foreign listed bonds. 

SEBI had issued notice to Hindenburg

Hindenburg Research once again made headlines in June this year when it revealed that capital market regulator SEBI had issued a notice against them alleging violation of Indian regulations. This development proved to be a turning point as Hindenburg Research clearly identified Kotak Bank in its report for the first time. As a result, the disclosure led to a significant drop in Kotak Bank’s share price, which hit its lowest level since June in the early trading session. 

Hindenburg said that the notice issued by the Indian market regulator on June 27, 2024 is ‘nonsense’. It was prepared to fulfill a pre-determined purpose. He said that there is an attempt to silence and intimidate those who expose the corruption and fraud committed by the most powerful persons in India.

SEBI’s notice made a big revelation

SEBI’s notice revealed that Kingdon Capital has made significant investments in Kotak Mahindra Investments Limited (KMIL). It was revealed that Kingdon Capital took advantage of the volatility in the market caused by a recent report. The firm made a strategic move by allocating $43 million to establish a short position in Adani Enterprises Limited (AEL) before the report came out. Subsequently, Kingdon Capital successfully closed these positions, making a profit of $22.25 million.