Hindenburg Research, whose report in January rocked Adani stocks, hints at 'another big one'

Can the market digest another Hindenburg report? US-based Hindenburg Research — yes, the same company whose report earlier this year rocked Adani group shares, may be working on another big report. That's what the financial research hinted at in a Twitter post early on Thursday. 

New report soon—another big one.

— Hindenburg Research (@HindenburgRes) March 22, 2023

The tweet immediately had the social media platform in splits, with a barrage of users making all sorts of guesses as to which business or entity could be on the US company's radar this time. Some users went that extra mile to share creative memes mocking the Hindenburg post.

Adani vs Hindenburg: A quick recap

It was a January 24 report by HIndenburg, accusing the Indian conglomerate of stock manipulation and misuse of offshore tax havens that sent Adani group stocks — from the likes of Adani Enterprises to Adani Ports — bleeding on Dalal Street, even as Adani group denied any wrongdoing.

The Adani conglomerate dismissed the Hindenburg report as baseless, and called the allegations "unsubstantiated speculations". The billionaire Gautam Adani-led group said the report was intended to enable the US-based short seller to book gains, without citing evidence. ALSO READ: Adani Group hits back at Hindenburg, calls allegations attack on India

In February, Adani Enterprises — the Indian group's flagship — withdrew a Rs 20,000-crore follow-on public offer (FPO) that was already fully subscribed. ALSO READ: ADANIENT calls off fully-subscribed FPO

What does Hindenburg Research do?

Hindenburg Research specialises in forensic financial research. According to its website, in particular, it often looks for situations where companies may have any combination of:

• Accounting irregularities
• Bad actors in management or key service provider roles
• Undisclosed related-party transactions
• Illegal/unethical business or financial reporting practices
• Undisclosed regulatory, product, or financial issues

What could be in store for whoever is on Hindenburg's radar this time, and for the financial markets?

Well, for now, Hindenburg has just six words to offer:

• New
• Report
• Soon
• Another
• Big
• One

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