Adani Group Issues 413-Page Reply, Calls Hindenburg “Unethical”

Guwahati: The Adani Group referred to Hindenburg as “an unethical short seller” in a 413-page reaction to the Hindenburg Research study on the economic interests of Adani.

According to the Adani report, “having short positions” in Adani equities entails betting against the stock rising.

Hindenburg betrayed its hand by profiting greatly from the decline in Adani shares as soon as the report was out on January 24.

The report was referred to as “nothing but a fiction” in the Adani Group’s summary of its lengthy rebuttal.

“The document is a malicious combination of selective misinformation and concealed facts relating to baseless and discredited allegations to drive an ulterior motive,” the Adani Group’s response said.

Adani Group has also addressed all 88 of Hindenburg’s inquiries in its 413-page report.

It went on to say the report by the US-based firm was intended only to create a “false market in securities” to enable Hindenburg, an admitted short seller, to book massive financial gain through “wrongful means at the cost of countless investors”.

In a statement earlier on Thursday, Adani Group said it was considering legal action against Hindenburg Research in both the US and India after the company’s research accused businesses owned by Gautam Adani of market manipulation and accounting fraud.

Jatin Jalundhwala, Group Head – Legal, Adani Group, in a statement, said, “The maliciously mischievous, unresearched report published by Hindenburg Research on 24 January 2023 has adversely affected the Adani Group, our shareholders and investors.”

“We (the Group) are evaluating the relevant provisions under US and Indian laws for remedial and punitive action against Hindenburg Research,” Jalundhwala said.

According to reports, the research firm expressed concern in its analysis on Tuesday about the prospect that shares of Adani group firms could decline from their current levels due to high valuations.

The timing of the report by Hindenburg Research, Adani Group had said, “clearly betrays a brazen, mala fide intention to undermine” the Adani Group’s reputation with the “principal objective of damaging” the group’s Follow-on Public Offering from Adani Enterprises, the biggest FPO ever in India.

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