Mumbai: Adani Group Chairman Gautam Adani has responded to the report released by US short-seller Hindenburg Research, which accused the conglomerate of stock market manipulation and accounting fraud.
Adani dismissed the allegations as a combination of "targeted misinformation and outdated, discredited allegations." He claimed that the short seller intentionally drove down stock prices of Adani group firms to generate profits.
In a message to shareholders, Adani revealed that the report was published on the eve of India's Republic Day, just as the company was preparing to launch the largest Follow-on Public Offering (FPO) in the country's history. Despite the FPO being fully subscribed, Adani Enterprises decided to withdraw and return the money to investors in order to protect their interests.
The short-selling incident resulted in numerous adverse consequences for the company. Adani promptly issued a comprehensive rebuttal, but various entities attempted to exploit the claims made by the short seller by spreading false narratives across news and social media platforms.
Adani emphasized that the Supreme Court-appointed Expert Committee found no regulatory failure on the part of the company. The committee's report acknowledged the mitigating measures taken by the Adani Group to rebuild confidence and stated that there were credible charges of concerted destabilization of the Indian markets. It also affirmed the quality of the group's disclosures and identified no instances of regulatory failure or breaches.
While the Securities and Exchange Board of India (SEBI) is yet to submit its investigation report, Adani expressed confidence in the group's governance and disclosure standards.
The allegations made by Hindenburg Research caused a significant stock rout in Adani group companies, prompting an investigation by the expert panel appointed by the Supreme Court. Adani's response aims to reassure shareholders and stakeholders about the group's integrity and commitment to transparency amid the ongoing scrutiny.