Adani Group hits back with detailed response calls Hindenburg allegations latest unsubstantiated updates

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Image source: ADANI ONLINE (TWITTER). The Adani Group hits back with a detailed response, calling Hindenburg’s allegations “unsubstantiated”.

Adani Hindenburg news: The group of India’s wealthiest Gautam Adani on Sunday (January 29th) likened damning allegations by short seller Hindenburg Research to a calculated attack on India, its institutions and its history of growth, saying the allegations are nothing but a lie.

In a 413-page response, Adani Group said the report was motivated by an ulterior motive to create a false market to allow the US company to make financial gains.

“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 growth and development of India. India’s ambition,” he said.

Stating that the allegations in Hindenburg Research’s Jan. 24 report are “nothing but a lie”, he said the document is “a malicious combination of selective misinformation and hidden facts about unsubstantiated allegations. and discredited for driving an ulterior motive”.

“This is rife with conflicts of interest and is intended solely to create a false securities market to enable Hindenburg, a recognized short seller, to achieve massive financial gain through illicit means at the expense of countless investors,” did he declare.

He then questioned Hindenburg’s credibility and ethics, and said the bad faith intent underlying the report was evident given the time Adani Enterprises Limited is undertaking one of the largest public offerings in actions in India.

“Hindenburg has not released this report for altruistic reasons but solely for selfish motives and in flagrant violation of applicable securities and foreign exchange laws,” he said.

“The report is neither ‘independent’, nor ‘objective’, nor ‘well-researched’.”

Activist short seller Hindenburg Research, the company that captured global attention with the breakup of electric vehicle makers Nikola and Lordstown Motors, alleged in a report on Wednesday that its two-year investigation found the Adani Group “had engaged in brazen inventory manipulation and accounting fraud”. regime over the decades.

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The report by the small New York-based short-selling company caused the Adani Group to lose more than $50 billion in market value in just two trading sessions and Adani himself lost more than $20 billion, or about one-fifth of its market value. total wealth.

Hindenburg called the conglomerate’s “substantial debt,” which includes pledging stock for loans; that Adani’s brother Vinod “runs a vast maze of fictitious offshore entities” that funnel billions into group companies with no disclosure required; and that its auditor “seems hardly capable of complex audit work”.

Of the 88 issues raised by Hindenburg, 65 of them relate to matters that have been duly disclosed by Adani’s portfolio companies, Adani Group said.

“Of the remaining 23 questions, 18 concern public shareholders and third parties (not Adani’s portfolio companies), while the remaining 5 are baseless allegations based on imaginary fact patterns.”

He listed the report’s issues and dismissed them as “false suggestions based on malicious misrepresentation of governance practices” or “a manipulated narrative around unrelated third-party entities” or “biased and unsubstantiated rhetoric.”

“We reaffirm that we comply with all applicable laws and regulations. We are committed at the highest levels of governance to protect the interests of all our stakeholders,” he said.

“The Adani Portfolio also has very strong internal controls and audit controls. All listed companies in the Adani Portfolio have a strong governance framework.”

The aim of the Adani portfolio and Adani’s verticals is to contribute to nation building and bring India to the world, he said.

“We will exercise our recourse rights to protect our stakeholders before all competent authorities and we reserve the right to respond to any allegations or content of the Hindenburg report or to supplement this statement,” he added.

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