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In the midst of the ongoing banking crisis in the US, forensic research platform Hindenburg Research has teased another report.
Following its report on Adani, US short-seller Hindenburg Research says it will soon release a new report on another target. The New York-based research firm did not specify the next release and gave no details about timing or content.
Nonetheless, speculation is rife that the upcoming Hindenburg Report may deal with the ongoing US banking crisis. This is due to the impact of the crisis on the financial landscape, as triggered by the recent collapse of some commercial banks.
Hindenburg Research brings out another report after scathing assessment of Adani Group
The announcement by Hindenburg Research on another report comes after a revelation on Adani Enterprises earlier this year. At that time, the research firm alleged that the Indian multinational conglomerate was involved in stock manipulation and accounting fraud. Hindenburg claimed that Adani operated this illegal scheme for decades in a “shameless” manner and took a short position on the Indian company. At the time, the Hindenburg thesis read:
“Today we reveal the findings of our 2-year investigation, presenting evidence that the Rs 17.8 trillion (US$218 billion) Indian conglomerate Adani Group engaged in a brazen stock manipulation and accounting fraud scheme for decades Is.”
Speaking on the shares of Adani Enterprises, Hindenburg said:
“After extensive research, we have taken short positions in Adani group companies through US-traded bond and non-Indian-traded derivative instruments.”
The US short seller also accused the Securities and Exchange Board of India of laxity in probing Adani’s offshore funds. Furthermore, Hindenburg alleged that the securities regulator did not implement actions that would have made it easier to delist Adani companies.
Report to reduce Adani market value and founder net worth
Hindenburg sharp reports The Ahmedabad-headquartered multinational conglomerate on the Adani Group faced a huge downfall after that. Adani lost over $150 billion in market value over the next five weeks. In addition, the group was also evicted From the S&P Dow Jones Stability Index.
In addition, Adani Group founder and chairman Gautam Adani took a substantial dent in his personal net worth as his company crumbled. Since the beginning of the year, Gautam Adani has lost around $62 billion and has dropped out of the top five richest people in the world. Formerly the third richest man in the world and the richest man in Asia, Adani is no more. 21 on the Bloomberg Billionaires Index.
The Adani Group strongly denied Hindenburg’s claims and expressed surprise at the allegations affecting its market value. Furthermore, the group claimed that Hindenburg published its report “without contacting us” or “verifying the facts”. According to Adani, which has vowed to protect its investors, the damaging reports are a “malicious combination of selective misinformation”. The company claims that it has always followed all the laws.
Significantly, Hindenburg’s stock manipulation report on the activities of the Adani group has not been proven in court. Nevertheless, another Hindenburg research report may have had a similar effect.
Hindenburg Research is a forensic financial research firm founded in 2017 by Nathan Anderson. The platform seeks to expose corporate financial improprieties. These acts include fraud, corruption, malpractice and insider trading.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to strip crypto stories down to the basics so that anyone anywhere can understand without a lot of background knowledge. When he is not delving deep into crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.