Hindenburg is once again in the news. On Saturday morning, the company tweeted on the social media platform X, writing that something big in the India soon. After this post, once again the market of discussions has become hot that who is now after Adani?
Hindenburg Report: In January last year, Hindenburg took the Indian stock market by storm. Hindenburg had made a big allegation against the Adani Group, due to which the prices of the group companies have seen a huge decline. Once the Hindenburg is in the news. He wrote on the social media platform ‘X’, “Something big soon in India” This post has once again created a sensation.
On January 24 last year, Hindenburg had attacked the Adani Group fiercely in its report. The Hindenburg report came ahead of Adani Enterprises’ FPO. After this report, the market value of Adani Group companies decreased by $ 86 billion. Apart from this, there was a lot of selling of Adani Group’s overseas listed bonds.
SEBI report raises questions on Hindenburg
SEBI, the body that regulates the market, has made a new disclosure in the Adani and Hindenburg case. SEBI has given a New York-based hedge fund manager a great information about the relationship between Mark Kingdon and Hindenburg. SEBI has said that Hindenburg had shared the report with Mark Kingdon two months before it was made public. Due to which a big profit was made through strategic trading.
In the 46-page show-cause notice, Sebi said Hindenburg and Kingdon Capital Management had entered into a research agreement in May 2021. Under this agreement, the draft report was shared between the two before the final report published in January 2023.
The SEBI notice shows that Kingdon Capital, which holds a stake in Kotak Mahindra Investment Ltd, had made profits during the turmoil of January 2023. According to the report, Kingdon Capital allegedly transferred $43 million to take a short position in Adani Enterprises Ltd. It later earned $22.25 million through the position.
Shares of Adani Enterprises Limited, an Adani Group company, fell from Rs 3422 to Rs 1404.85 after the Hindenburg report published on January 24, 2023. The company’s shares fell 59 percent. SEBI has found in its investigation that K India Opportunities Fund, controlled by Kingdon, had started trading shortly before the report was published. And when the shares of Adani’s company fell from the report, they made big gains.
In its defence, Kingdon Capital said it could legally enter into such an agreement. Also, it is allowed to receive and take action on the report before it is made public. Kotak Mahindra Bank has denied any knowledge of the relationship between Kingdon and Hindenburg.