The conglomerate’s shares have suffered since Hindenburg issued. The report alleging fraud and other misdeeds.
India’s Adani Group, run by Asia’s richest man, has hit back. At a report by US-based short-seller Hindenburg Research. Calling it “malicious,” “baseless” and full of “selective misinformation.”
The conglomerate’s shares have suffered since Hindenburg issued. The report alleging fraud and other misdeeds. On Monday, shares of some Adani companies recovered some lost ground. The flagship company, Adani Enterprises, gained 3.2%. And Adani Ports and Special Economic Zone Ltd added 3.3%. But the share of other Adani listed companies falls between 5% and 20%.
Adani’s 400-page rebuttal issued late. On Sunday accused Hindenburg of attacking India and its institutions. and violating securities and foreign exchange laws. Adani also accused Hindenburg, which it said was betting against group companies. Of trying to derail a share sale that was originally expected to bring in about $2.5 billion.
“This is not merely an unprovoked attack. On a particular company but a calculated attack on India, the independence. Integrity and quality of Indian institutions. And India’s growth story and ambition,” Adani’s statement said.
In response, the Hindenburg firm denied the allegations. And said Adani’s response largely confirmed. Its findings and failed to address key questions. It said the group is trying to match its rise with its own success in India.
“We believe India is a vibrant democracy. And an emerging superpower with an exciting future. We also believe that India’s future is held by the Adani Group,” Hindenburg said in a statement. By one of the world’s richest men,” it said. Gautam Adani and his family have built a huge fortune mining coal. To fuel energy-hungry India’s fast-growing economy. Businesses in the conglomerate span industries including infrastructure. Ports, data transmission, media, renewable energy, defense manufacturing. And Agriculture Adani’s own assets have grown by nearly 2,000% in recent years.
With a fortune of about $125 billion at the end of last year. Adani briefly surpassed Amazon boss Jeff Bezos to become the world’s second-richest person. According to Bloomberg’s Billionaires Index. After last week’s losses, Bloomberg’s index ranked him the seventh. Richest in the world with a fortune of $92.7 billion. The Hindenburg report said it was an “85% decline in fundamentals. Due to sky-high valuations” of seven key Adani listed companies.
Hindenburg said his report, “Adani Group. How the World’s 3rd Richest Man Is Pulling the Largest Con in Corporate History.” follows a two-year investigation. It listed 88 questions it invited the company to answer. Most of the complaints involve concerns about the group’s debt levels. The activities of its top executives, its use of offshore shell companies. And past investigations into fraud.
Investors began dumping Adani-linked shares on Wednesday. Wiping out about $48 billion in market value
Over the weekend, Adani said it would go ahead with the sale of its stake in Adani Enterprises as scheduled. Even though its share price had fallen well below the offer price. On Monday, Adani Enterprises was trading at 2,850 rupees ($35). Up 3.2% but below the band of 3,112 to 3,276 rupees initially set for the offer to close on Tuesday.
In response to Hindenburg, the his Group said none of the 88 questions. In its report were “based on independent or journalistic fact-finding.” It rejected many questions as baseless, misleading or biased. In response to other queries, the team attached. Documents and data tables and said it followed local laws.
Adani also dismissed concerns about its debt-fueled growth. Saying “the leverage ratio of Adani portfolio companies. Is healthy and in line with industry norms in the respective sectors.”
In an interview with CNBC TV-18 on Monday. Adani’s chief financial officer Jugeshinder Singh said. the group’s total debt was $30 billion, of which $9 billion was with Indian banks.
Hindenburg said only 30 pages of Adani’s response focused. on the issues it raised and the rest consisted of court records. general information, company financials and “irrelevant corporate initiatives”. Adani failed to specifically answer 62 of the 88 questions it raised, it said.
Late on Thursday, Adani Group Legal Head Jatin Jalundwala. said the group was considering legal action against Hindenburg. Hindenburg said it stands by its report and would welcome legal action by the Adani Group.