New Delhi: US-based short-seller Hindenburg Research in a cryptic post on social media platform X stated “Something big soon India” leading to a flurry of responses on its handle in which X users criticised the company for misleading investors.
Something big soon India
— Hindenburg Research (@HindenburgRes) August 10, 2024
Hindenburg-Adani group saga
Hindenburg Research was at the centre of a controversy when it released a research report in which it alleged irregularities in Adani Group holdings. Hindenburg took a short position against the Gautam Adani-led group’s stocks which led to a massive selloff erasing over $100 billion in share value.
Gautam Adani, once among the top 3 richest persons in the world slipped out of the top 10 billionaires’ rankings. The move also led to the cancellation of Adani Group flagship company Adani Enterprises’ record Rs 20,000 crore follow-on public offer.
To be sure, Adani Group has rebutted these allegations and even received a clean chit from the Supreme Court to this effect, backed by a report from markets regulator SEBI, which saw no evidence of wrongdoing in Adani Group companies.
Hindenburg research hit out at SEBI for allegedly protecting Kotak Mahindra Bank group entity Kotak Mahindra Investments which had set up an offshore trading account used by US-based businessman Mark Kingdon. The latter used this account to maintain a short position against Adani Group shares.
Adani Update – Our Response To India’s Securities Regulator SEBIhttps://t.co/4IIF948v0j
— Hindenburg Research (@HindenburgRes) July 1, 2024
Social media response
X user Devansh Gupta said “[Hindenburg’s] credibility is out of the window. India won’t care.” Another user, Shaurya Sahu expressed curiosity and asked, “any bank or IT company?” In a lighter vein, X user Tharavadikal urged the short seller to wait for 2 weeks so that they could close current market positions to short the market.
CA Manish Savalkar urged investors to show Hindenburg that the power of DIIs trumps the power of FIIs in Indian markets. He said this was part of a broader plan with “all Indian neighbours country (sic) targeted.” “Since your bogus report against Adani, within a year it bounced back & the economy isn’t affected,” said X user Shivanand.
US-based short seller Hindenburg Research has teased another India-focused report soon, piquing investors’ curiosity. Social media users were not bothered as they questioned the company’s credibility after the short seller attack on Adani Group. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today