Hindenburg claims it hardly made money by shorting Adani stocks and bonds: ‘Reality is…’

The admission came in response to a show cause notice issued by markets regulator Sebi to Hindenburg.

US short seller Hindenburg Research said that it made $4.1 million revenue through gains made by shorting of Adani securities by its client. This will hardly break even considering the costs of producing the research, it said, adding, “We have made ~$4.1 million in gross revenue through gains related to Adani shorts from that investor relationship.”

Adani group chairman Gautam Adani. (ANI)

The admission came in response to a show cause notice issued by markets regulator Sebi to Hindenburg Research. Hindenburg also made $31,000 by shorting Adani's US bonds, which it said was a tiny position.

"Net of legal and research expenses (including time, salaries/compensation, and costs for a 2-year global investigation) we may come out ahead of break even on our Adani short," it said.

Denying reports that Hindenburg had 12-16 investor partners which made millions of dollars, it said, "The reality, as detailed in the show cause notice, is less dramatic. We only had one investor relationship in our Adani thesis, as is customary for our approach and as we have discussed in multiple public interviews."

The short seller also said that its work exposing the Adani Group was not financially justifiable and even less justifiable from personal risk perspective.

"But, to date, our research on Adani is by far the work we are most proud of," it said, adding, “The incentives are clear: The gains from fraudulent activities outweigh the small risks of a potential 'slap on the wrist’ fine from regulators. And brd on the hundreds of tips and leads we received following the Adani report, Adani is by no means the only lurking and ongoing issue Sebi has failed to address.”