Another big one: Adani slayer Hindenburg Research teases new report
What's the story
United States (US)-based short-seller Hindenburg Research tweeted on Thursday that it will release a new report soon, calling it "another big one." Although it did not specify the time or the subject of the report, speculations are rife that it could be on the collapsing banks in the US. The firm garnered headlines earlier after its report on the Adani Group in January.
Context
Why does this story matter?
The firm's report on Adani Group was released on January 24, just days before the conglomerate's follow-on public offer (FPO), which resulted in its withdrawal. In just five weeks, it wiped out over $150 billion from the conglomerate's market value. Soon after, Adani Group and the ruling Bharatiya Janata Party (BJP) called the report a concerted attack on India's rise on the global platform.
Foreign matters
Many accused Hindenburg of ignoring the US banking crisis
The new report could likely be on the banking crisis in the US which has witnessed the collapse of Silicon Valley Bank and Signature Bank within a week, with others on the brink of a collapse. Hindenburg drew flak for its alleged silence on the banking crisis in its own country while many accused it of "poking its nose" in foreign countries.
Details
Opposition has called for JPC to probe allegations
While the ruling dispensation is trying to sweep the 106-page report on Adani under the carpet, the Opposition has called for a Joint Parliamentary Committee (JPC) to investigate the allegations made by Nathan Anderson's firm. Notably, the Opposition had expressed concerns about the exposure of public funds in the government-owned Life Insurance Corporation (LIC) and State Bank of India (SBI) to the Adani Group.
Adani
Adani was world's second richest person when report was released
Notably, Gautam Adani was the world's second-richest person when the report came out. The firm insists that it is not a hedge fund but a forensic research outfit that operates with its own capital. Since the report, several publications have reported on the glaring irregularities surrounding the conglomerate's steep rise and related offshore investors, which point to Gautam Adani's elder brother Vinod Adani.
Information
Half of Adani's FDI came from opaque offshore entities: FT
An analysis by the London-based Financial Times also showed that nearly half of the foreign direct investment (FDI) into the Adani group of companies, amounting to $2.6 billion of the total $5.7 billion, came from opaque offshore entities linked to the Adanis.