File photo of Adani Group’s building at Adani Shantigram near Ahmedabad. , Photo Credit: Vijay Soneji
A day after being released by the US short-seller Hindenburg research report Expressing serious concern about the “substantial debt” of the Adani group, the Ahmedabad-based group said it is evaluating relevant provisions under US and Indian laws for remedial and punitive action against Hindenburg Research.
In a statement on January 26, group legal head Jatin Jalandhwala said the report was a “deliberate and reckless attempt by the foreign entity” and asserted that it was meant to “clog the FPO (follow-on public offering)” from Adani Enterprises . ,
“The maliciously mischievous, uncorroborated report published by Hindenburg Research on 24 January 2023 has adversely affected the Adani Group, our shareholders and investors. The volatility in the Indian stock markets created by the report is a matter of great concern and has caused undue suffering to Indian citizens.
Read this also |Adani shares fall on ‘substantial debt’ from short-seller Hindenburg Research
“We are deeply troubled by the deliberate and reckless attempt by a foreign entity to mislead the investor community and the general public,” the statement quoted Mr Jalandhwala as saying.
Adani’s shares drowned in the market
On Wednesday, shares of Adani Group’s listed companies, including the recently acquired cement and media units, declined across the board with losses ranging from 1.5% to 8% in the wake of reports that the company had “substantial debt”. went. The entire group on “precarious financial footing”.
Hindenburg Research said in its report, “Today we reveal the findings of our 2-year investigation, presenting evidence that … the Adani Group engaged in an open stock manipulation and accounting fraud scheme for decades.” ” report good Published on its website on 24 January.
“Our research has included speaking with dozens of individuals, including former senior executives of the Adani Group, reviewing thousands of documents” and conducting site visits in nearly half a dozen countries, it said, adding that it has focused on the Adani Group ” Took a short position” in US-traded bonds and companies through derivative instruments traded outside India.
‘Malicious combination of selective misinformation’: Adani Group
Following a fall in its shares, the Adani Group termed the report as a “malicious combination of selective misinformation and stale, baseless and defamatory allegations”.
“The timing of the publication of the report clearly shows an open, malicious intent to undermine the reputation of the Adani Group with the main objective of damaging the upcoming follow-on public offering of Adani Enterprises,” Group CFO Jugeshinder Singh Told in a statement.
Mr. Singh emphasized that “the group has always been compliant with all laws, regardless of jurisdiction, and maintains the highest standards of corporate governance.”
The group’s flagship company Adani Enterprises is set to tap the market with a follow-on public offering of Rs 20,000 crore, which will open to the public on January 27.