Hindenburg says Adanis’ nationalist rebuttal ignores allegations

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(Bloomberg) – Hindenburg said a thorough rebuttal by the eponymous conglomerate Gautam Adanis to US short sellers’ allegations of widespread corporate malfeasance ignores all of its key allegations and is clouded by nationalism.

The 413-page statement released by the Adani Group on Sunday did not specifically answer 62 of Hindenburg’s 88 questions, the short-seller said at the start of India on Monday, and confused the meteoric rise of the business and wealth of the richest man in Asia with the success of India itself.

We disagree, Hindenburg’s statement said. To be clear, we believe India is a vibrant democracy and an emerging superpower with an exciting future. We also believe India’s future is being held back by the Adani Group, which has draped itself in the Indian flag while systematically plundering the nation.

Adani seeks to calm investors with 413-page rebuttal on Hindenburg

Adani is trying to calm investors as he pursues a $2.5 billion stock sale and stems a stock market rout that wiped more than $50 billion from his group’s market value. The conglomerate said most of the 88 issues raised by Hindenburg Research had already been addressed in public disclosures and called the US companies doing nothing less than calculated securities fraud under applicable law. He also repeated a threat of legal action.

Adani is perceived by critics to be close to Indian Prime Minister Narendra Modi and has sought to portray Hindenburg’s accusations against his conglomerate as an attack on his home country. The tycoon has often aligned his business with Modis’ development goals, building capital-intensive infrastructure such as ports and airports.

This is not just an unwarranted attack on any particular company, but a calculated attack on India, the independence, integrity and quality of Indian institutions, and the history of India’s growth and ambition, Adani said in his response.

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