“We are evaluating relevant provisions under US and Indian laws for remedial and punitive action against Hindenburg Research,” Adani Group Legal Group Head Jatin Jalandhwala said in a statement on Thursday.
Hindenburg claimed that his 129-page report was the result of two years of effort, and that its investigation led him to several countries, including the tax haven of Mauritius.
The Hindenburg researchers pointed to a complex maze of transactions carried out by several listed firms of the Adani group. The report highlights alleged shell firms set up in tax havens including the UAE and Mauritius, which are used to route loans to certain listed and private companies, often without the requisite disclosures.
“Even if you ignore the findings of our investigation and take Adani Group’s financials at face value, its seven core listed companies have declined 85% on a purely fundamental basis,” Hindenburg said in the report.
The report said the investment group took short positions in Adani’s companies through US-traded bonds and non-Indian-traded derivative instruments.
The Adani Group said in its statement that the maliciously mischievous, unresearched report published by Hindenburg Research on January 24 has adversely affected the Adani Group, its shareholders and investors. The report states that the volatility in the Indian stock markets is a matter of great concern and has caused undue suffering to Indian citizens.
“Clearly, the report and its unsubstantiated content were designed to have a detrimental effect on the share prices of Adani group companies, as Hindenburg Research, by its own admission, was positioned to benefit from a slide in Adani shares Is. [“We hold short positions in Adani Group Companies through U.S.-traded bonds and non-Indian-traded derivatives, along with other non-Indian-traded reference securities.”]said in the statement.
“We are deeply troubled by this deliberate and reckless attempt by a foreign entity to mislead the investor community and general public, bring down the goodwill and reputation of the Adani Group and its leaders, and scuttle the FPO (Follow-on Public Offering) Let’s break Adani Enterprises,” it added.
In the Rs 20,000-crore follow-on public offer (FPO) of Adani Enterprises, which will open for public subscription on Friday and close on January 31, a slew of foreign and domestic investors bought shares worth approx. 6,000 crore as part of the anchor book allocation.
Investors participating in the anchor book include Singapore-based Maybank Securities Pte Ltd, insurance major LIC, SBI Employees Pension Fund, SBI Life Insurance Company, HDFC Life Insurance Company, Abu-Dhabi-based sovereign wealth fund ADIA, Goldman Sachs Investment and Morgan Stanley. Huh. Asia.
The price band for share sale has been fixed between 3112 and 3276, with an additional Rs 64 discount for retail investors.
catch ’em all corporate news And updates on Live Mint. download mint news app to receive daily market update & stay business News,