Hindenburg Research on Saturday dropped a hint about a possible new India-centric report. This comes more than a year after the US-based short seller published allegations of stock manipulation and fraud against the Adani Group.

"Something big soon India," said a post by Hindenburg Research on social media platform X (formerly Twitter). In January last year, the US-based firm published a report accusing the Adani Group of financial irregularities, leading to a sharp drop in the stock prices of the multinational conglomerate's subsidiaries.

The claims made by Hindenburg in its report have been constantly denied by the group of companies. The fallout from the report was visible in the sharp fall, estimated at around USD 100 billion, witnessed by the share prices of various Adani Group companies. The controversial report was published two days before a USD 2.5 billion follow-up public offering was issued by Adani Enterprises.

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WHAT IS HINDENBURG RESEARCH?

Hindenburg Research, founded by Nathan Anderson in 2017, is a US-based forensic financial research firm. The company analyses equity, credit and derivatives. After finding potential wrongdoings, Hindenburg usually publishes a report explaining the case. It has a track-record of detecting financial irregularities and engaging in short selling in the target company.

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A trading strategy, short selling involves betting against a company's stock price. Hindenburg takes short positions in its target companies before releasing its reports. If the firm's share price drops following the public release of Hindenburg's report, the latter profits as a short seller.

COMPANIES TARGETED BY HINDENBURG

Hindenburg Research has flagged potential wrongdoing in at least 16 companies since 2017, according to its website. Some of the renowned companies targeted by Hindenburg include Nikola, Kandi Automotive, and Lordstown Motors.

(With inputs from agencies)