New Delhi [India], January 25 (ANI): Jugeshinder Singh, the chief financial officer (CFO) of the Adani Group, on Wednesday said the conglomerate was ‘shocked’ about the Hindenburg Research‘s report and termed it a “malicious combination of selective misinformation and stale, baseless and discredited allegations that have been tested and rejected by India’s highest courts”. Reportedly, the research firm, in its report on Tuesday, raised concerns about shares of Adani group companies having a possibility of declining from their current levels, owing to high valuations.

“We are shocked that Hindenburg Research has published a report on January 24, 2023, without making any attempt to contact us or verify the factual matrix. The report is a malicious combination of selective misinformation and stale, baseless and discredited allegations that have been tested and rejected by India’s highest courts,” the CFO said in a statement.

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

He went on to state that the investor community has always reposed faith in the Adani Group on the basis of detailed analysis and reports prepared by financial experts and leading national and international credit rating agencies. “Our informed and knowledgeable investors are not influenced by one-sided, motivated and unsubstantiated reports with vested interests,” he added in the statement.

“The Adani Group, which is India’s leader in infrastructure and job creation, is a diverse portfolio of market-leading businesses managed by CEOs of the highest professional calibre and overseen by experts in various fields for several decades,” the CFO was quoted as saying further. “The Group has always been in compliance with all laws, regardless of jurisdiction, and maintains the highest standards of corporate governance,” Singh added. (ANI)

Adani group mulls legal options in US, India against Hindenburg Research

New Delhi [India], January 26 (ANI): Adani Group on Thursday said it is mulling legal options in the US and India against Hindenburg Research after its report accused firms owned by Gautam Adani of “brazen” market manipulation and accounting fraud.
Jatin Jalundhwala, Group Head – Legal, Adani Group, said, “The maliciously mischievous, unresearched report published by Hindenburg Research on 24 January 2023 has adversely affected the Adani Group, our shareholders and investors.”

The legal head said, “We (the Group) are evaluating the relevant provisions under US and Indian laws for remedial and punitive action against Hindenburg Research.” “The volatility in Indian stock markets created by the report is of great concern and has led to unwanted anguish for Indian citizens,” the legal head said in a statement on Thursday.

Hindenburg, an US investment research firm published a report claiming that Adani group had links with a labyrinth of off shore tax havens linked to Gautam Adani’s family and the firms exposure to high debt was a concern. The report also claimed that Adani group’s stock price was inflated and had significant downside risks.

On the report affecting Adani shares, Jatin Jalundhwala said, “Clearly, the report and its unsubstantiated contents were designed to have a deleterious effect on the share values of Adani Group companies as Hindenburg Research, by their own admission, is positioned to benefit from a slide in Adani shares.”

Jalundhwala also mentioned Hindenburg which said that it had taken “short positions in Adani Group Companies through US-traded bonds and non-Indian-traded derivatives, along with other non-Indian-traded reference securities.” The Adani group’s legal head said, “We are deeply disturbed by this intentional and reckless attempt by a foreign entity to mislead the investor community and the general public, undermine the goodwill and reputation of the Adani Group and its leaders, and sabotage the FPO (Follow-on Public Offering) from Adani Enterprises.”

Jugeshinder Singh, the chief financial officer (CFO) of the Adani Group, on Wednesday said the conglomerate was “shocked” by the Hindenburg Research’s report and termed it a “malicious combination of selective misinformation and stale, baseless and discredited allegations that have been tested and rejected by India’s highest courts”.

Reportedly, the research firm, in its report on Tuesday, raised concerns about shares of Adani group companies having a possibility of declining from their current levels, owing to high valuations. “We are shocked that Hindenburg Research has published a report on January 24, 2023, without making any attempt to contact us or verify the factual matrix. The report is a malicious combination of selective misinformation and stale, baseless and discredited allegations that have been tested and rejected by India’s highest courts,” the CFO said in a statement.

The timing of the report by Hindenburg Research, the CFO, in his statement, said “clearly betrays a brazen, mala fide intention to undermine” the Adani Group‘s reputation with the “principal objective of damaging” the upcoming Follow-on Public Offering from Adani Enterprises, the biggest FPO ever in India. (ANI)

Hindenburg’s report is a “calculated attack” on India and its growth story: Adani Group

Ahmedabad (Gujarat) [India], January 29 (ANI): Adani Group on Sunday said the recent report by Hindenburg Research was not an attack on any specific company but a “calculated attack” on India, its growth story, and ambitions.

“This is not merely an unwarranted attack on any specific company but a india“>calculated attack on India, the independence, integrity and quality of Indian institutions, and the growth story and ambition of India,” the Adani Group said in a 413-page response.

In its response to the Hindenburg Research, the Adani Group has attacked Hindenburg as “an unethical short seller”. It added the report was “nothing but a lie”.

A short seller in the securities market books gain from the subsequent reduction in prices of shares.
The Adani Group states that by “holding short positions” in Adani stocks, it is betting on the stock falling. Hindenburg exposed its hand as it made huge money with the fall of Adani stocks immediately following the publication of the report on January 24.

“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. 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”.

Adani Group, in its 413-page report on Sunday, has also responded to all 88 questions raised by Hindenburg in details.

“India’s future is being held back by Adani Group…,” Hindenburg responds to Adani’s 413 page rebuttal

New York [US], January 30 (ANI) The Adani Group has attempted to conflate its meteoric rise and the wealth of its Chairman, Gautam Adani, with the success of India itself, Hindenburg Research said on Monday hours after the Indian conglomerate in its rebuttal said that allegations of stock manipulation levelled by the US-based short seller amounted to a “calculated attack on India.”

Stating that “Fraud cannot be obfuscated by nationalism” the Hidenburg Research hit out at the Adani Group claiming that the latter’s “Bloated Response” ignored “every key allegation we raised.”

The response comes in the wake of an extensive 413-page report released by Adani Group that dismissed all allegations against it and termed the Hindenburg report as an “attack on India and its independent institutions”.

Hindenburg Research had on January 24 published a report accusing the Adani Group of accounting fraud and stock manipulation over decades that had led to a nearly USD 51 billion sell-off in shares of the port- to-energy Indian conglomerate.

The Adani Group said the report was driven by “an ulterior motive” to “create a false market” to allow the US firm to make financial gains. It accused the Hindenburg Research report as a “malicious combination of selective misinformation and stale, baseless and discredited allegations“.

Hindenburg Research in its rebuttal early today said “Hours ago, Adani released a ‘413-page response’. It opened with the sensationalistic claim that we are the “Madoffs of Manhattan”. ” “It also predictably tried to lead the focus away from substantive issues and instead stoked a nationalist narrative, claiming our report amounted to a “calculated attack on India.” In short, the Adani Group has attempted to conflate its meteoric rise and the wealth of its Chairman, Gautam Adani, with the success of India itself,” the HIndenburg group said.

The short seller said it disagreed. “To be clear, we believe India is a vibrant democracy and an emerging superpower with an exciting future. We also believe India‘s future is being held back by the Adani Group, which has draped itself in the Indian flag while systematically looting the nation,” it said
“We also believe that fraud is fraud, even when it’s perpetrated by one of the wealthiest individuals in the world,” it said.

The Hindenburg group stated that of Adani’s 413 page response only “about 30 pages focused on issues related to our report.” “The remainder of the response consisted of 330 pages of court records, along with 53 pages of high-level financials, general information, and details on irrelevant corporate initiatives, such as how it encourages female entrepreneurship and the production of safe vegetables,” it said.

The group said its report asked 88 specific questions of the Adani Group and in its response, Adani failed to specifically answer 62 of them. “Instead, it mainly grouped questions together in categories and provided generalized deflections”

“In other instances, Adani simply pointed to its own filings and declared the questions or relevant matters settled, again failing to substantively address the issues raised,” the Hindenburg group said.
The US-based short seller noted that the core allegations of its report – “focused on numerous suspect transactions with offshore entities – were left completely unaddressed.”

Hindenburg said, “We asked about the source of the billions of US dollars that have flowed from Vinod Adani-Associated Offshore shell entities through the Adani Group. Adani’s defence: “We are neither aware nor required to be aware of their ‘source of funds'”

For examples, it said, “Example #1: A U.S. ~$253 Million Loan From a Mauritius Entity Where Vinod Adani Serves As a Director” and added, “Example #2: An Investment Of U.S. $692.5 Million From A Mauritius Entity Controlled By The Head Of The Adani Group‘s Private Family Investment Office”
Hindenburg said, “Our report outlined numerous irregularities and connections between suspected offshore stock parking entities and Adani promoters, raising key questions about whether promoter holdings were fully disclosed. Adani’s response claimed it simply doesn’t know who its largest public holders are.”

The US firm also said, “On Adani’s legal technicality defense: It strikes us as obvious that Vinod Adani is a related party to The Adani Group.” Hindenburg concluded that, “Adani’s response largely confirmed our findings and Ignored Our Key Questions. Disclosure: We Are Short Adani Group Through US-Traded Bonds And Non-Indian-Traded Derivative Instruments”

In a disclaimer the Hindenburg group claimed that it held short positions in Adani Group Companies through US-traded bonds and non-Indian-traded derivatives, along with other non-Indian-traded reference securities and the report relates solely to the valuation of securities traded outside of India. (ANI)