Hindenburg Research has now said that it is coming up with a new report soon on another target and promised it to be a ‘big one’.
“New report soon—another big one,” Hindenburg Research wrote on Twitter, without providing further details.
Hindenburg, run by Nate Anderson, isn’t a hedge fund and on its website it describes itself as one that specializes in forensic financial research.
Hindenburg on January 24, in a report titled Adani Group: How The World’s 3rd Richest Man Is Pulling The Largest Con In Corporate History, alleged following two-year investigation that Rs 17.8 trillion conglomerate Adani Group has engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades.
It alleged, “Gautam Adani, Founder and Chairman of the Adani Group, has amassed a net worth of roughly $120 billion, adding over $100 billion in the past 3 years largely through stock price appreciation in the group’s 7 key listed companies, which have spiked an average of 819% in that period.”
The report wiped out more than $150 billion from Adani group’s market value in about five weeks since January 24 and Gautam Adani lost his throne as Asia’s and India’s richest. The business tycoon whose wealth soared manifold in the recent decade now faces investigation by Indian authorities.Adani also unexpectedly announced the withdrawal of its Rs 20,000-crore follow-on public offer (FPO), which had been successfully completed the day before. Investor mood was further jolted after the share sale was called off.
The Adani Group had rubbished the allegation of stock manipulation, saying it had “no basis” and stemmed from ignorance of Indian law. The company said over the past decade, group companies have “consistently de-levered”.
In September 2020, Hindenburg had published a report Nikola: How to Parlay An Ocean of Lies Into a Partnership With the Largest Auto OEM in America, with the help of whistleblowers and former employees. It called out a vast array of alleged lies and deceptions by Nikola in the years leading up to its proposed partnership with General Motors.
In the same year in June, it wrote about WINS Finance, pointing out that a company subsidiary in China was subject to a RMB 350 million asset freeze which had not been disclosed to U.S. investors. Hindenburg flagged that WINS’ parent, which owned 67.7% of WINS’ equity, had already been declared insolvent in China with no disclosure to U.S. investors. About four months later, in October 2020, NASDAQ delisted WINS specifically due to the undisclosed asset freeze we identified, according to Hindeburg’s website.
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