“Bloated Response”: Short-Seller Hindenburg On Adani’s 413-page Rebuttal


Hours after Adani Group released a 413-page rebuttal to Hindenburg Research’s fraud allegations. The US-based short-seller said the statement “ignores the core allegations”.

“The fraud cannot be obscured by nationalism or a bloated response that ignores every original allegation we raise.” Hindenburg said, standing by his report last week. Which alleged that the Adani group had “engaged in a scheme of extensive stock manipulation and accounting fraud” for decades.

“Bloated Response”: Short-Seller Hindenburg On Adani’s 413-page Rebuttal

Hindenburg said the response from the organization run by Gautam Adani, Asia’s richest man. “Opened with sensational claims that we are the ‘Madoffs of Manhattan.’ And failed to answer” 62 of the 88 questions. “The questions it answered, the group basically confirmed or tried to evade our findings.” The short seller said, adding that the explanations “merely defy common sense”.

“Adani’s response includes irrelevant corporate initiatives, such as how it promotes female entrepreneurship and safe vegetable production,” Hindenburg said.

The Adani Group said in its statement on Sunday that the American firm’s conduct was “nothing less than a calculated securities fraud under applicable laws.” And added that it would pursue remedies to protect its stakeholders.

“This is not just 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 ambitions,” the statement said.

Hindenburg said the Adani statement “attempted to divert the focus away from the main issues and instead create a nationalist narrative”.

“Adani Group has sought to combine its meteoric rise and the wealth of its chairman Gautam Adani with success in India,” it said.

“We disagree. To be clear, we believe India is a vibrant democracy and an emerging superpower with an exciting future,” Hindenburg said.

Hindenburg’s fraud allegations wiped $51 billion off Adani’s flagship firm’s market value. The firm’s report claims the Adani group has ties to offshore tax havens and is a concern for high debt.

Seven listed companies belonging to the Adani group saw their share prices fall sharply following the report.

Adani Enterprises’ secondary share sale opened to retail and institutional investors on Friday but saw only 1% subscription as the company’s stock fell 11% below the minimum offer price. Adani Group said the sale was scheduled at the planned issue price.

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