Kotak Mahindra Bank shares back in green after clarification in Adani-Hindenburg matter

/3 min read

ADVERTISEMENT

The bank has clarified that Hindenburg Research was never a Kotak Mahindra International Limited (KMIL) client nor an investor in K- India Opportunities Fund Ltd.
Kotak Mahindra Bank shares back in green after clarification in Adani-Hindenburg matter
Shares of Kotak Mahindra Bank gain as much as 1.6% to ₹1,799.90 on the BSE 

Shares of Kotak Mahindra Bank rose over 1% in opening trade on Wednesday, after paring over 2% in the previous session, following clarification by the private lender in response to a show cause notice received from SEBI in the Adani-Hindenburg matter. The SEBI’s allegations relate to short selling of Adani Group stock following the publication of an adverse report by Hindenburg on January 25, 2023, against billionaire Gautam Adani-led companies.

In a clarification to exchanges, the bank, founded by billionaire banker Uday Kotak, said that U.S.-based short seller Hindenburg Research was never a Kotak Mahindra International Limited (KMIL) client nor an investor in K- India Opportunities Fund Ltd. K- India Opportunities Fund Ltd (KIOF)-Class F is a Mauritius-based SEBI registered foreign portfolio investor managed by KMIL.

Fortune India Latest Edition is Out Now!
India's Top 100 Billionaires

August 2025

As India continues to be the world’s fastest-growing major economy, Fortune India presents its special issue on the nation’s Top 100 Billionaires. Curated in partnership with Waterfield Advisors, this year’s list reflects a slight decline in the number of dollar billionaires—from 185 to 182—even as the entry threshold for the Top 100 rose to ₹24,283 crore, up from ₹22,739 crore last year. From stalwarts like Mukesh Ambani, Gautam Adani, and the Mistry family, who continue to lead the list, to major gainers such as Sunil Mittal and Kumar Mangalam Birla, the issue goes beyond the numbers to explore the resilience, ambition, and strategic foresight that define India’s wealth creators. Read their compelling stories in the latest issue of Fortune India. On stands now.

Read Now

“The Fund was never aware that Hindenburg was a partner of any of its investors. KMIL has also received a confirmation and declaration from the Fund’s investor that its investments were made as a principal and not on behalf of any other person,” says Kotak Mahindra Bank’s spokesperson.

The bank issued the clarification after Hindenburg, in its reply to the SEBI's show-cause notice, said Kotak Mahindra group created and oversaw the offshore fund structure used by its investor partner to short Adani stocks. However, the claim was later denied by the Kotak Mahindra group.

On June 26, 2024, capital market regulator SEBI issued a show cause notice to Hindenburg, Kingdon, persons related to them, as well as KIOF, which was received by KMIL on July 2, 2024.

Kotak Bank clarified that “the transactions in respect of which the above allegations are being made were made by the Fund on the advice, and for the benefit, of its investor Kingdon”.

“KMIL was informed by Kingdon that the transactions were made on a principal basis, i.e. for themselves. Kingdon never disclosed that they had any relationship with Hindenburg nor that they were acting on the basis of any price sensitive information. In fact, they had expressly confirmed that any advice from Kingdon to invest would be basis purely public information,” the bank said in the exchange filing.

“Neither the Fund nor KMIL were aware that Kingdon entities, which include a U.S. SEC registered investment advisor, in respect of whom KYC as per law was duly performed, had any association with Hindenburg. The Fund and KMIL had no prior knowledge of the publication of the aforesaid Hindenburg report. We deny any allegation of being aware of such report or acting in collusion in any manner with Kingdon or Hindenburg,” it added.

Following this clarification, shares of Kotak Mahindra Bank gained as much as 1.6% to ₹1,799.90, while its market capitalisation climbed to ₹3.57 lakh crore.  On Tuesday, the share price of the private lender ended 2.16% lower at ₹1,769.60 with a m-cap of ₹3.51 lakh crore. The stock touched its 52-week high of ₹1,987 on July 21, 2023, and a 52-week low of ₹1,544.15 on May 3, 2024. In the last one year, the stock has fallen nearly 3%, while it lost around 4% in six months. The counter has gained around 5% in the last one month. 

(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)

Fortune India is now on WhatsApp! Get the latest updates from the world of business and economy delivered straight to your phone. Subscribe now.