New Delhi: Adani Group, the conglomerate led by India’s richest businessman Gautam Adani, on Wednesday dismissed the research report of Hindenburg Research, a US-based short seller and said that it was a malafide intention was to damage its upcoming Follow-On Public Offering (FPO).
The flurry of allegations by Hindenburg & strong rebuttal by Adani Group comes amid major turmoil in markets today, with many entities of Indian conglomerate plummeting to new lows.
The Adani Group said that the Hindenburg report was a malicious combination of selective misinformation & stale, baseless and discredited allegations and the same was rejected by India’s highest courts.
“The timing of the report’s publication clearly betrays a brazen, mala fide intention to undermine the Adani Group’s reputation with the principal objective of damaging the upcoming Follow-on Public Offering from Adani Enterprises, the biggest FPO ever in India,” Jugeshinder Singh, Adani Group CFO said in a statement.
He further asserted that the group has always ensured compliance with all laws, regardless of jurisdiction and maintains highest standards of corporate governance.
— Newsroom Post (@NewsroomPostCom) January 25, 2023
What Hindenburg research report claimed
Hindenburg, an US-based firm, specializing n activist short-selling made wide-ranging allegations against the Adani Group today, claiming that the latter was engaged in corporate malpractice. It cited its two-year investigation to corroborate its claims of financial bungling in the group.
Hindenburg said it is holding short positions in Adani Group companies through US-traded bonds. It claimed that the group engaged in stock manipulation and values of its companies are over-valued and thus pose great risks to financials of the Group as well as its investors.
Upheaval in stock markets
Refuting the ‘baseless’ claims, Gautam Adani-led group said that the investor community has always reposed faith in the Adani Group on the basis of detailed analysis and reports prepared by financial experts and leading national and international credit rating agencies.
Wednesday marked a major turbulence at the Dalal Street as the stock markets turned red and shed more than 700 points, mostly driven by the sharp drop in multiple firms of Indian conglomerate Adani Group. Overall, the Adani Group stocks tanked almost about 5% during the day.