In a 413-page response, Adani Group referred to Hindenburg Research’s damning assessment as “a premeditated attack on India, its institutions, the country’s growth story, and its goals.”
In-depth details about 413 pages of the Adani Group’s response to the Hindenburg Report
According to the statement made public on Sunday night by the Gautam Adani-led firm, “Hindenburg’s behaviour is nothing short of a planned securities fraud under applicable laws.”
“The document is a nasty mash-up of cherry-picked falsehoods and hidden material pertaining to spurious and debunked charges to further an underlying agenda. This is riddled with conflicts of interest and merely meant to feign a market in securities to allow Hindenburg, a self-avowed short seller, to illegally book substantial profits at the expense of several investors, the Adani statement continued.
In its research from January 24 headlined “Adani Group – How The World’s Third Richest Man Is Pulling The Largest Con In Corporate History,” the New York-based short-seller claimed that: levelled strong accusations against the business, estimating that most Adani equities would decline by 85% “purely on the basis of company fundamentals.”
The conglomerate threatened legal action in a statement released by Adani Group on January 26 and signed by Jatin Jalundhwala, its legal director.
The market capitalisation of seven Adani Group stocks—Adani Transmission, Adani Green Energy, Adani Total Gas, Adani Power, and Adani Wilmar—was reduced by Rs 2.3 lakh crore as a result of Hindenburg Research’s analysis.
Adani Transmission, Adani Green Energy, and Adani Total Gas stocks all dropped 20% on Friday, touching lower circuit. Adani Power and Adani Wilmar both fell 5%, testing the day’s lower trading limits. As the trading session came to an end, Adani Ports fell more than 16%. The company Hindenburg Research, named after the tragic hydrogen balloon that burst into flames on May 6, 1937, converted more over Rs 4 lakh crore in market capitalization from 10 Adani listed firms into complete gas in just two days.
Jugeshinder Singh, the chief financial officer of Adani Enterprises, earlier accused the investor activism group of not making “any attempt to contact” the business or confirming the “factual matrix.”
“The report is an evil mash-up of old, unsubstantiated, and discredited charges that have been put to the test and rejected by India’s top courts. The timing of the report’s release shows a brazen, malicious desire to harm the Adani Group’s reputation with the main goal of jeopardising the impending Follow-on Public Offering from Adani Enterprises, the largest FPO ever in India.
The disclosure significantly hurt Adani’s FPO because open market pricing fell below those that were being provided in the FPO. Just 1% of investors were participating in the issuance as of Friday’s market closure.
Nathan Anderson, who created the investment research company, welcomed Adani Group’s threat to sue Hindenburg Research.
“In the 36 hours following the publication of our study, Adani has not responded to a single significant concern we expressed. At the end of our report, we posed 88 simple questions that, in our opinion, give the corporation an opportunity to be forthcoming. Adani hasn’t responded to any of these queries so far.
“We would welcome the company’s threats of legal action, to be honest,” Hindenburg declared on January 26 that “we firmly stand by our report and think any legal action taken against us would be without foundation.
“We are extremely alarmed by this foreign entity’s deliberate and careless attempt to deceive the investing public and the general public, harm the standing and character of the Adani Group and its leaders, and sabotage the FPO (Follow-on Public Offering) from Adani Enterprises. In order to take corrective and punitive measures against Hindenburg Research, we are analysing the pertinent provisions under US and Indian legislation “The statement from Adani said.