Hindenburg report was 'targeted misformation' to earn profit: Adani
In a scathing attack on Hindenburg Research, Adani Group Chairman Gautam Adani said the report, which accused the conglomerate of stock manipulation and financial irregularities, was a combination of "targeted misinformation and discredited allegations" aimed at harming the conglomerate's reputation. Adani claimed in its annual report that Hindenburg gained huge profits after the shares of the Adani Group fell drastically.
Why does this story matter?
The Hindenburg report, released in January, accused Adani Group of stock manipulation, accounting fraud, and other offenses, which badly impacted its shares. The report was a major setback for the future plans and ambitions of the group. Many concerns were expressed regarding the company's capacity to repay debts and generate cash. However, Adani denied all allegations, assuring lenders of the normalization of the situation.
Hindenburg report aimed at damaging our reputation, generating profits: Adani
Referring to the Hindenburg report, Adani said, "The report was a combination of targeted misinformation and outdated, discredited allegations aimed at damaging our reputation and generating profits through a deliberate drive-down of our stock prices." Despite a fully subscribed Follow-on Public Offering (FPO), the company decided to withdraw and return investors' money to protect their interests, he claimed.
Adani alleges false narratives were spread across news, social media
Adani further said that the short-selling incident resulted in several adverse consequences that the company had to confront. "Even though we promptly issued a comprehensive rebuttal, various vested interests tried to opportunistically exploit the claims made by the short seller," he said. "These entities engaged and encouraged false narratives across various news and social media platforms," Adani added.
Supreme Court committee found no regulatory failure: Adani
According to Adani, the expert committee constituted on the orders of the Supreme Court did not find any regulatory failure by the group. "The committee's report not only observed that the mitigating measures, undertaken by your company helped rebuild confidence but also cited that there were credible charges of concerted destabilization of the Indian markets," the group chairman said.
Political storm in India over Hindenburg report
Notably, Adani Group shares fell significantly following the release of the Hindenburg report on January 24. On the other side, the central government came under fire for supposedly supporting Adani, while the opposition repeatedly demanded an investigation into the report by a Joint Parliamentary Committee (JPC). Various government entities, notably the State Bank of India (SBI), have debt exposure to Adani Group enterprises.
Adani is no more world's second-richest person
Before Hindenburg's report, Adani was the second-richest person in the world. While Hindenburg maintains that it is not a hedge fund but a forensic research outlet operating with its capital, numerous outlets have reported on the Adani Group anomalies since the report. Furthermore, it raised concerns about the conglomerate's premature rise and related offshore investors, which point to Adani's older brother Vinod Adani.
