Why Hindenburg Research says something new coming to India ?

American short-selling firm Finnigt Research said something big will happen in India soon. After accusing the Adani Group of money laundering and share manipulation, Finnigt Research has written this on social media platforms. Through this post, Finnigt has hinted at a new opportunity. However, he has not named any company.

Hindenburg Research has claimed to have exposed the fraud of many companies so far. This company was founded in 2017 by Nathan Edison. It is a forensic financial institution that analyses equity, credit and derivatives. This company's name is mentioned in the Hindenburg Aviation Institute, which was established on May 6, 1937. This incident took place in the US at the Manufacturing Downs of Jesse. The company detects any irregularities in any company and then files a report against it. The company claims that it has a man-made disaster. These include accounting irregularities, mismanagement and hidden transactions. The company then cheats the company of its own money to earn profits.

 

Hindenburg's five allegations on Adani Group

1. Adani Group companies manipulated the share price to increase it

2. Money laundering and accounting fraud were committed, 5 CFOs were changed in 8 years

3. The share price of 7 companies of the group was up to 85% more, i.e. skyrocket valuation

4. Adani Group had a debt of 2.20 lakh crore, more than its companies' assets.

5. Companies from Mauritius and other countries bought Adani shares.

Adani group on Hindenburg Report

1. Hindenburg published the report without any attempt to verify the factual matrix.

2. The Hindenburg Report is a malicious combination of selective misinformation and baseless allegations.

3. Reports are baseless and discredited allegations that have been tested  & rejected by India’s highest court.

4. The timing of the Report publication betrays a brazen, Mala fide intention to undermine the Adani group's reputation with the objective of damaging upcoming FPO.

Supreme Court backs SEBI clean chit to Adani group in Hindenburg case, no sit probe.

Many companies have been ruined

After earning a degree in Information Technology from the University of Technology, Edison worked for FactSet Research Systems Inc., a data company. There, he worked in investment management companies. In an interview in 2020, he said, "I think analytics is a great way to do it." Edison has also worked as a sensexer in I.T. His name is, and he enjoys working under pressure. He considers MarketPos as his model. MarketPos was an analyst who exposed Bunny Madoff's fraud scheme. The company claims to have exposed irregularities in at least 36 companies since 2017.

How much did Adani earn from betting?

 By shorting Adani Securities, a subsidiary of Mahindra & Mahindra, he got a valuation of $4.1 million through his own investment. But this is different from the amount he earned in the investment. The company earned a valuation of $4.1 million from Adani Shorts through its Man investment partnership. The company also earned $31,000 by shorting Adani's U.S. bonds. The company had a minimal position in the company. Leaving aside the gains and losses, Adani Short can still break even. Lundberg also blamed the bank for the matter d,ifferent from He said that the bank had created a foreign fund structure which its investment partner used to take a short bet against the Adani Group.

Short selling means selling shares and buying them later. Short selling means selling shares that were not with the trader at the time of the trade. These shares are bought later and the position is automatically closed. Short selling requires the arrangement of borrowing or lending shares. In simple words, in the same way, you buy shares and then sell them, in short, selling shares are sold, you buy shares and then sell them, in short. He said that the bank had created a foreign fund structure and bought. Whatever happens during this period, that will be your profit or loss.