Hindenburg Reports Alleged Piracy By Its Companies, Adani Group Says ‘attack On India’

Hindenburg Reports Alleged Piracy By Its Companies, Adani Group Says ‘attack On India’

The Adani group lost more than USD 50 billion in market value in just two trading sessions, and chairman Gautam Adani lost more than USD 20 billion, or about a fifth of his net worth, a New York firm reported.

The Adani Group on Sunday termed the allegations against its companies in a report by New York-based Hindenburg Research last week as a “calculated attack on India”, its institutions and India’s “growth story”.

In response to the 106-page Hindenburg Research Report 413-page, in which it was accused of “brazen stock manipulation and accounting fraud”, the Adani group said, “This is not just an unnecessary attack on a particular company, but a calculated attack”. Independence, integrity and quality of Indian institutions and India’s growth story and ambition.”

Adani Group said, “It is of great concern that statements made by entities thousands of miles away, with no credibility or ethics, have had a serious and unprecedented adverse impact on our investors.”

The Adani group lost more than USD 50 billion in market value in just two trading sessions, and chairman Gautam Adani lost more than USD 20 billion, or about a fifth of his net worth, a New York firm reported.

Questioning the timing of the report – two days before the FPO by its flagship Adani Enterprises Ltd – the group said,

“Given its timing, the ulterior motives underlying the report become apparent in case Adani Enterprises Ltd takes over, which will be the biggest ever. public offer.

Adani Group’s response stated that the Hindenburg Report was “neither ‘independent’ nor ‘objectively’ nor ‘thoroughly researched'”, while reiterating that the group complies with all applicable laws and regulations.

The report, the Adani Group said, is a “corrupted combination of selective misinformation and suppressed facts relating to baseless and slanderous allegations to drive petty motives”.

“The report is motivated by a conflict of interest and is intended solely to create a false market in securities to enable Hindenburg, an admitted short seller, to obtain predatory financial gain through unfair means at the expense of numerous investors,” the group further said.

Questioning Hindenburg Research’s credentials, he said, “Ironically, for an organization seeking transparency and honesty, not much is known about Hindenburg or its employees or its investors.

Its website alleges that the organization’s experience spans ‘decades’ and that However, it seems to have been established in 2017 only.

After the release of the Hindenburg Research report on 24th January, there was a massive sell-off in the shares of Adani Group.

In the last two trading sessions, Wednesday and Friday, 10 listed Adani companies have gained Rs. 4.17 lakh crore lost.

“While we are under no obligation to respond to these baseless allegations made in the report, in the spirit of good governance, transparency and to avoid unfair trade practices to our stakeholders, we also provide our answers as well as ’88 questions’ in the report. The report was raised,” the Adani group said.

Stating that Hindenburg “did not publish the report for any altruistic reason but solely out of selfish motives and in clear violation of applicable securities and foreign exchange laws”, the group said, “The fact of the matter is that Hindenburg is an unethical short seller.” benefits from the subsequent reduction.”

Stating that the Adani Group “complies with all applicable laws and regulations”, the response said, “The Adani portfolio also has very strong internal controls and audit controls. All the listed companies in the Adani portfolio have strong governance frameworks.”

There are over 200 Dutch companies present in India including Philips, Akzo Nobel, DSM, KLM and Rabobank.

Similarly, there are more than 200 Indian companies operating in the Netherlands, which include TCS, HCL, Wipro, Infosys, Tech Mahindra as well as all the big IT companies like Sun Pharmaceuticals and Tata Steel.

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