Adani Hindenburg News: Richest Indian Gautam Adani’s group on Sunday (Jan 29) compared the deadly allegations made by short seller Hindenburg Research to a well-planned attack on India, its institutions and growth story, saying the allegations are nothing but lies.
In a 413-page reply, the Adani Group said the report was motivated by an ulterior motive of false market creation to allow the US firm to make financial gains.
This is not just an unwarranted attack on a specific company, but a systematic attack on India, the independence, integrity and quality of Indian institutions and India’s growth story and ambition.
Asserting that the allegations are “nothing but lies”, a January 24 report by Hindenburg Research said the document was “a malicious combination of selective misinformation and hidden facts relating to baseless and defamatory allegations, a secret The purpose is to run”.
“It is rife with conflicts of interest and intended only to create a false market in securities to enable Hindenburg, an admitted short seller, to unfairly book massive financial gains at the expense of countless investors.”
It questioned the credibility and ethics of Hindenburg, and said that the underlying malicious intent of the report was made clear given its timing when Adani Enterprises Limited was undertaking one of the largest ever public offerings of equity shares in India. Used to be.
“Hindenburg has not published this report for any altruistic reasons, but purely out of selfish motives and in open violation of applicable securities and foreign exchange laws,” it said.
“The report is neither ‘independent’ nor ‘objective’ nor ‘well researched’.”
Activist short seller Hindenburg Research, the firm that attracted global attention with its takedown of electric-vehicle makers Nikola and Lordstown Motors, alleged in a report on Wednesday that its two-year investigation found the Adani group “a brazen stock manipulation and found to be involved in accounting fraud”. Planning during the Decades”.
Know more about the case:
Adani Group has lost over USD 50 billion in market value in just two trading sessions and Adani himself has lost over USD 20 billion, reports a small New York firm specializing in short selling , or about a fifth of that. Total luck.
Hindenburg called out the group’s “substantial debt”, including pledging shares for the loan; Adani’s brother Vinod “manages a vast maze of offshore shell entities” that funnel billions into group companies without required disclosure; and that its auditor “barely appears capable of performing the complex audit work”.
The Adani Group said that of the 88 questions raised by Hindenburg, 65 pertained to matters duly disclosed by Adani portfolio companies.
“Of the remaining 23 questions, 18 pertain to public shareholders and third parties (and not Adani portfolio companies), while the remaining 5 are baseless allegations based on fictitious fact patterns.”
It listed questions from the report and dismissed them as “false suggestions based on malicious misrepresentation of governance practices” or “manipulated narratives about unrelated third party entities” or “biased and unfounded rhetoric”. .
“We reaffirm that we are in compliance with all applicable laws and regulations. We are committed to the highest level of governance to protect the interests of all our stakeholders.”
“The Adani portfolio also has very strong internal controls and audit controls. All the listed companies in the Adani portfolio have a strong governance framework.”
The focus of Adani Portfolio and Adani Vertical is to contribute to nation building and take India to the world.
“We will exercise our rights to pursue measures to protect our stakeholders before all appropriate authorities and we reserve our rights to respond to any allegations or content of the Hindenburg Report or to supplement this statement “
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