Hindenburg report false, committee found no regulatory failure: Adani
In a fresh attack on Hindenburg Research, Adani Group Chairman Gautam Adani alleged its report—which accused the conglomerate of stock manipulation and financial irregularities—was a "deliberate and malicious attempt aimed at damaging its reputation." He added that the report was aimed at generating profit by driving down its stocks. Adani claimed the Supreme Court-appointed committee studying Hindenburg's allegations found no instances of regulatory failure.
Why does this story matter?
Adani Group was accused of stock manipulation, accounting fraud, and other misdeeds in the Hindenburg report in January, causing its shares to plummet. The report brought a serious setback to the group's future objectives and ambitions. Many were also concerned about the company's ability to repay its obligations and generate income. However, Adani refuted all charges, assuring lenders that the situation would be normalized.
Confident about governance, no agency cut ratings: Adani
Expressing gratitude to stakeholders at Adani Group's Annual General Meeting, Adani said, "We remain confident of our governance and disclosure standards. My commitment is that we will continue to strive to improve governance and disclosure standards. Our track record speaks for itself." He claimed the conglomerate raised several billions from international investors, and no credit agency internationally cut any ratings of the group.
Parties with vested interests promoted false narratives: Adani
Adani further said that the majority of the short-selling company's allegations dated back to 2004 to 2015. "Parties with vested interests encouraged and promoted false narratives across various news and social media platforms, but Adani Group moved to protect investor interest," he said. Notably, the conglomerate had withdrawn from a fully subscribed Follow-on Public Offering (FPO) and returned investors' money following the allegations.
Adani claims SC committee found no regulatory failure
Moreover, the expert committee constituted on the orders of the Supreme Court found no regulatory failure by the group, Adani claimed. He added that the committee's report published in May observed that the mitigating measures undertaken by the conglomerate helped rebuild confidence. Adani also alleged that there were credible charges of concerted destabilization of the Indian markets, according to the committee.
Hindenburg report triggered political storm in India
Following the publication of the Hindenburg report on January 24, shares of Adani Group dropped precipitously. Soon, the opposition repeatedly demanded that a Joint Parliamentary Committee (JPC) look into the findings, while the central government came under fire for allegedly favoring Adani. Several government-run organizations, especially the State Bank of India (SBI), have debt exposure to the businesses owned by the Adani Group.
Adani lost world's 2nd-richest person tag following report
Adani was the second-richest person in the world prior to Hindenburg's alleged revelations. However, he lost that tag after the conglomerate's growth fell rapidly after the report. On the other hand, various news outlets have also reported on the anomalies in Hindenburg's report. Also, the short-seller insists that it is not a hedge fund but rather a forensic research organization using its own funds.
