News Update

‘Adani Group has struck a nationalist chord,’ asserts Hindenburg

• ByStartupStory     |    January 30, 2023

Hindenburg Research said on Monday that “fraud cannot be obfuscated by nationalism,” in response to Adani Group’s 413-page response to a report outlining numerous issues of suspected fraud.

The US-based firm claimed in their response that Adani’s bloated response ignored every key allegation they raised and that “the Adani Group predictably tried to lead the focus away from substantive issues and instead stoked a nationalist narrative.”

Hindenburg’s reaction came just hours after Gautam Adani’s group called the damaging allegations made by the US short seller a “calculated attack” on India.

According to Hindenburg Research, the Adani Group has “attempted to conflate its meteoric rise and the wealth of its Chairman, Gautam Adani, with India’s success.”

“We disagree. 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,” the US firm stated.

It further stated, “We also believe that fraud is fraud, even when it’s perpetrated by one of the wealthiest individuals in the world.”

“This is not merely an unwarranted attack on any specific company but a calculated attack on India, the independence, integrity and quality of Indian institutions, and the growth story and ambition of India,” The Group said.

Of the 88 questions raised by Hindenburg, 65 of them relate to matters that have been duly disclosed by Adani portfolio companies, Adani Group said. “Of the balance 23 questions, 18 relate to public shareholders and third parties (and not the Adani portfolio companies), while the balance 5 are baseless allegations based on imaginary fact patterns.”

The Activist group on Wednesday reported that its two-year investigation found the Adani Group “engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades”.

According to the report by the New York firm that specialises in short selling, Adani Group lost more than USD 50 billion in market value in just two trading sessions, and Adani himself lost more than USD 20 billion, or roughly one-fifth of his total fortune.

“Regarding the company’s threats of legal action, to be clear, we would welcome it. We fully stand by our report and believe any legal action taken against us would be meritless,” Hindenburg said in its statement posted on its Twitter handle.

“If Adani is serious, it should also file suit in the US where we operate. We have a long list of documents we would demand in a legal discovery process,” the US firm further said.

 

 

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