Kotak Mahindra denies Hindenburg's allegations, Shares ended by 2.49% lower

Kotak Mahindra International Limited on Tuesday stated that Hindenburg Research has never been an investor in the Kotak Mahindra International Fund.

This response came after allegations that Hindenburg colluded with Kingdon Capital Management, using a Kotak group offshore fund to short Adani group shares last year.

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In a media statement, Kotak clarified that "the Fund was never aware that Hindenburg was a partner of any of its investors." The bank emphasized that investments were made by its investors independently.

Kotak also mentioned its cooperation with India's market regulator. Shares of Kotak Mahindra Bank ended by over 2% during the session.

Hindenburg Research had accused the bank, founded by Uday Kotak, of creating and overseeing an offshore fund that allowed an unnamed investor to profit from the decline in Adani shares following Hindenburg's critical report.