The tweet by Hindenburg Research has come at a time when there are widespread concerns over the financial health of the banking system globally.
Hindenburg Research, which is led by Nathan Anderson, triggered a selloff in Gautam Adani’s group shares, two months ago, after it made several allegations including stock manipulation and accounting frauds at Adani group companies.
- Updated Mar 23, 2023, 8:35 AM IST
Hindenburg Research, whose scathing report on Gautam Adani-led Adani group in January erased $150 billion of group market capitalisation within five weeks, is ready with ‘a new report’ that the US-based short seller promises is a ‘big one’. It is yet to be known whether the new report is on the Adani group or any other group or entity.
The tweet by Hindenburg Research has come at a time when there are widespread concerns over the financial health of the banking system globally. SVB Bank collapsed in the US while UBS’ takeover of Swiss bank Credit Suisse is seen as forced marriage. The fresh Hindenburg report is also coming in the backdrop of rising interest rates globally, with the US Federal Reserve raising its policy rate by 25 basis points overnight.
Little known Hindenburg Research, which is led by Nathan Anderson, triggered a selloff in Gautam Adani’s group shares, two months ago, after it made several allegations including stock manipulation and accounting frauds at Adani group companies. While the Adani group denied all allegations, the group’s market capitalisation tanked, pushing Gautam Adani’s wealth by $61.7 billion year-to-date. At last count, Adani was worth $58.90 billion, down from $150 billion in September last year.
The Adani group later took several steps cut debt and allay investor concerns. Adani group completed the acquisition of Haifa Port in Israel for $1.2 billion. In December 2022, Adani Enterprises acquired NDTV founders’ 27.3 per cent stake in the media company. It also completed acquisition of Ambuja Cements and its subsidiary ACC from Switzerland’s Holcim group for $6.4 billion. The recent acquisitions raised concerns over the group’s debt later, especially after Hindenburg’s allegations. The group has been taking steps to allay investor concerns.
The group recently sold Rs 15,446 crore worth of shares in four of its companies to US-based GQG Partners. GQG Partners bought 38,701,168 Adani Enterprises shares at Rs 1,410.86 apiece for Rs 5,460 crore.
Later the embattled Adani Group revealed that it prepaid share-backed financing of Rs 7,374 crore ($901.16 million) to various international banks and Indian financial institutions. The group also held roadshows in Dubai, London, Hong Kong and Singapore, among others.
Besides, it recently cancelled a Rs 7,017 crore coal plant purchase and shelved plans to bid for a stake in power trader PTC India. It also suspended work on a Rs 34,900 crore petrochemical project in Gujarat’s Mundra.
S&P Global Ratings on Wednesday said that it is closely monitoring additional information on the Adani Group’s governance and funding to decide on its ratings action.