Adani Group has responded to the serious allegations made by financial research company Hindenburg Research. Answer of 413 questions has been issued by Adani Group. The group described Hindenburg’s allegations as a “planned attack” against not only the company but India.
Adani Group replied, “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.”
In a 413-page reply, the Adani Group said the Hindenburg report was motivated by the “ulterior motive” of “creating a false impression” so that the US company could get financial benefits.
What is the whole matter?
On 24 January 2023, a report by Hindenburg Research made fresh allegations of stock market manipulation and money laundering against the billion-dollar group founded by Gautam Adani.
In the report, Adani Group was accused of market manipulation, accounting fraud and money laundering. It was also claimed in the report that major listed companies of Adani Group have high debt and shares of all group companies are overvalued by more than 85%.
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The group said “It is a matter of great concern that the statements of an entity sitting thousands of miles away without any credibility or ethics have seriously affected our investors. The malicious intent of this report is also clear from its timing, this report came when Adani Enterprises was bringing the country’s largest FPO (Adani Enterprises FPO) of equity shares.”
In the report of Hindenburg Research, 88 questions were asked from Adani Group. Adani Group said in response, “Hindenburg has released this report not for the good of the people, but for his own selfishness. In releasing it, Hindenburg has also violated the Securities and Foreign Exchange Law. Neither is this report independent. It is neither unbiased nor properly researched and prepared.”
The report seeks answers to “88 questions” – 65 of which pertain to matters disclosed by Adani portfolio companies in their annual reports, memorandums, financial statements and stock exchange disclosures from time to time, available on its website 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 hypothetical fact patterns.”
Now Hindenburg replied – Fraud cannot be hidden in the name of nationalism
Hindenburg responded to Adani Group’s 413-page rebuttal saying, “It is Adani Group’s attempt to divert attention from potential issues and resort to nationalism.” Adani Group’s reply claimed that our report “on India planned attack”. The Adani Group has sought to associate its meteoric rise and the wealth of its Chairman, Gautam Adani, with the success of India. We disagree. To be clear, we believe that India is a vibrant democracy and An emerging superpower with an exciting future. We also believe that India’s future is being stalled by the Adani Group, which has wrapped itself in the Indian flag while systematically looting the nation.”
The effect of the allegations
This report by Hindenburg Research led to a loss of $48 billion in Adani’s stock by January 27, 2023, though the flagship firm, Adani Enterprises, continued with its $2.5 billion follow-up public offer (FPO) despite losses.
