Gautam Adani Discredits Hindenburg Report, Labels Allegations As False And Malicious
Delhi, 19th July 2023: During the 31st Annual General Meeting (AGM) of the Adani Group, Gautam Adani, the chairman, reaffirmed his stance on the Hindenburg report, which was released earlier this year. Adani labeled the report as containing false information and discredited allegations, with the intention of damaging the company’s reputation. The Hindenburg Research, a US-based short-seller, had accused the group of engaging in stock manipulation and accounting fraud in a report published just before the launch of Adani Enterprises. The follow-on public offer (FPO) of Rs 20,000 crore by THIS Ltd.
In a video message, Gautam Adani denounced the Hindenburg Research report as a deliberate blend of “targeted misinformation and discredited allegations.” He clarified that most of the allegations pertained to the period between 2004 and 2015, and were already resolved by the relevant authorities at that time. Adani emphasized that the report was a malicious attempt to tarnish the company’s reputation and generate profits through a temporary reduction in stock prices.
The release of the Hindenburg report had a significant impact on the Adani Group, resulting in a substantial decline in the market value and share prices of its listed companies. Moreover, as a consequence of the report, the highly anticipated Rs 20,000 crore follow-on public offering (FPO) for Adani Enterprises Ltd. was called off despite being fully subscribed. Adani acknowledged that despite issuing a comprehensive rebuttal, various vested interests and entities actively propagated false narratives across news and social media platforms, seeking to exploit the claims made by the short seller.
During his address, Gautam Adani expressed gratitude to all those who contributed to the success of the company and emphasized that the true ambitions of the Adani Group are yet to be fully realized. He provided reassurance to stakeholders, affirming the group’s resilience, unwavering dedication to long-term objectives, and steadfast commitment to upholding its robust market standing.
In March, following the release of the Hindenburg report, the Supreme Court established a six-member expert committee to investigate any regulatory failures in addressing the alleged contravention of securities market laws by the Adani Group or other companies. The court issued a directive to the Securities and Exchange Board of India (SEBI) to conduct an investigation into potential breaches of minimum public shareholding regulations in publicly traded companies.
