On Sunday, the Adani Group called the negative charges made by short-seller Hindenburg Research “nothing but a lie” and compared them to a “calculated attack” on India, its institutions, and its economic narrative. The group responded with a 413-page document, alleging that the research was motivated by “an ulterior goal” to “create a false market” in which the U.S. Company might profit.
In recent years, Adani, now 60 years old, rocketed to becoming the third richest man in the world. However, due to the current stock market crash, he has fallen to seventh place on Forbes’ list of the wealthiest people in the world.
Adani group said that the attack by Hindenburg Research was not merely an unwarranted attack on any specific company but a calculated attack on India, the independence, integrity and quality of Indian institutions, and the growth story and ambition of India.
The document also stated that Adani Group “duly reported” all transactions it has entered into with organisations that qualified as “related parties” under Indian legislation and accounting standards.
“Hindenburg has not published this report for any altruistic reasons but purely out of selfish motives and in flagrant breach of applicable securities and foreign exchange laws,” “The report is neither ‘independent’ nor ‘objective’ nor ‘well researched’.” the document said.
The activist short seller Hindenburg Research, the company that gained worldwide notoriety for its attacks on electric car manufacturers Nikola and Lordstown Motors, attacked Adani Group with baseless allegations on the 25th of this month.
The Hindenburg Report has three major themes:
The selective and manipulative presentation of publicly available information creates a misleading narrative.
Complete ignorance or willful contempt of applicable law, accounting standards, and industry practice.
Disrespect for Indian institutions, such as regulators and the courts.
The report has been put out with the admitted intent of Hindenburg (holding short positions in various listed companies of the Adani portfolio through U.S. traded bonds and non-Indian-traded derivatives, along with other non-Indian-traded reference securities) to profiteer at the cost of Adani groups shareholders and public investors.
The Adani group has provided a precise response to the report that Hindenburg Research compiled on its business by providing answers to all 88 questions, including the youth and inexperience of the company’s auditors. Of the 88 questions Hindenburg posed, 65 pertain to topics that Adani portfolio firms have appropriately reported. “Of the remaining 23 inquiries, 18 pertain to public shareholders and other parties (as opposed to the Adani portfolio firms), and the remaining 5 are baseless allegations based on imaginary fact patterns.”
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