‘Unwarranted attack on India and its growth story’, Adani responds to Hindenburg’s allegations
The Adani Group released a 413-page document on Sunday night listing point-by-point responses to allegations made by Hindenburg Research last week regarding stock market manipulation and various accounting frauds.
The Adani Group called the report an unwarranted attack on India and its growth story.
“This is not just an unwarranted attack on any particular company, but a calculated attack on India, the independence, integrity and quality of Indian institutions, and the growth and development of India. India’s ambition,” the group said.
The Group said it was shocked and deeply disturbed to read the report published by Hindenburg Research, calling it “nothing but a lie”.
“The document is a malicious combination of selective misinformation and concealed facts regarding baseless and discredited allegations to drive an ulterior motive. This is rife with conflicts of interest and is intended solely to create a fake securities market to enable to Hindenburg, an established short seller, for recording massive financial gain through illicit means at the expense of countless investors,” the group said in a statement.
The statement raised questions about the bad faith intent of the report, which was released days before Adani Enterprises’ (FPO) new public offering.
The response has been published and covers three main themes of the Hindenburg report, namely – (i) Selective and manipulative presentation of matters already in the public domain to create a false narrative
(ii) Total disregard or willful disregard of applicable legal and accounting standards and industry practices.
(iii) Disregard for Indian institutions, including regulators and the judiciary.
Of the 88 questions or allegations in the Hindenburg report, the Adani Group said none of the 88 questions is based on independent or journalistic investigation.
They are simply selective regurgitations of public disclosures or rhetorical innuendo coloring rumors as fact, the Group said.
He added that out of the 88 issues, 65 of the issues have been duly disclosed by Adani Portfolio companies in their annual reports available on their websites.
18 issues related to public shareholders and third parties and the remaining five are “baseless allegations based on imaginary fact patterns”.
He said the report was released purely out of selfishness and in clear violation of applicable securities and foreign exchange laws.
The Group has reaffirmed its compliance with all applicable laws and regulations. ”
We engage at the highest levels of governance to protect the interests of all our stakeholders, he said.
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