Home/ News / World/  After Adani bombshell, Hindenburg signals ‘another big one’

Gautam Adani’s fortune was reduced to $53 billion from a peak of over $150 billion in September 2022 as a result of the stock market crash following the release of a Hindenburg report, and he was pushed outside the top 35 on Forbes' list of the world's richest people. His conglomerate suffered a loss of over $120 billion. In addition to raising worries about rising debt, the Hindenburg Research study on January 24 suggested unlawful use of offshore tax havens and stock manipulation.

After targeting the Gujarat tycoon and his conglomerate, Hindenburg Research has signalled to carry out ‘another big’ expose. On March 23, the American short-seller tweeted: “New report soon—another big one." And, it has sparked curiosity all over the world, with many wondering if it would be about a US bank.

One Indian user has replied to Hiindenberg’s post and written that, “hopefully", it won’t be about another Indian company. The user asked Hindenberg to carry out a report on a Chinese company this time.

The Hindenburg report created a ruckus in the market while the Opposition shifted all its focus to an alleged connection between Adani Group and the Narendra Modi government. Mallikarjun Kharge, the Leader of the Opposition in the Rajya Sabha, claimed in February that Prime Minister Narendra Modi had declined to respond to questions about the Hindenburg-Adani controversy in the legislature.

Also Read: Gautam Adani's wealth fell over 60% from his peak post Hindenburg report

"Wealth of one person increased 13 times in 2.5 years. In 2014 it was 50,000 crore while in 2019 it became one lakh crore. What magic happened is that suddenly in two years wealth rose to 12 lakh crore," Kharge said.

A financial research company, Hindenburg Research looks into stock, credit and derivatives for any potential mismanagement, accounting irregularities, and hidden transactions. After publishing reports on its findings, the company makes an investment using its own funds and wagers against the target.

Also Read: Hindenburg fallout: Adani Group suspends work on 34,900 cr petchem project in Gujarat

Hindenburg made "a significant win" against Nikola Corp, the manufacturer of electric trucks, in September 2020. Whistleblowers and former employees, according to Hindenburg, assisted with its research. In June 2020, Nikola made its debut as a publicly traded business. A few days later, it surpassed Ford Motor in terms of valuation, reaching $34 billion. In January 2023, the company’s value dropped to $1.34 billion.

Sounak Mukhopadhyay
Sounak Mukhopadhyay, who also goes by the name Sounak Mukherjee, has been producing digital news since 2012. He's worked for the International Business Times, The Inquisitr, and Moneycontrol in the past. He's also contributed to Free Press Journal and TheRichest with feature articles. He covers news for a wide range of subjects including business, finance, economy, politics and social media. Before working with digital news publications, he worked as a freelance content writer.
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Updated: 23 Mar 2023, 08:15 AM IST
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