Gautam Adani on Hindenburg report ‘targeted misformation’, false allegations

American short seller Hindenburg Research Report Indian Business Group Chairman Gautam Adani said the Adani Group in January was “targeted misinformation” intended to damage its reputation and be misused by “special interests”.

Promise me, in a letter to the group’s major shareholders Adani projectsHe said that the Hindenburg published the report just before Republic Day in India and just as the company was planning a subsequent public offering (FPO) that would have been the largest in the history of the Indian market.

“The report was a mixture of targeted disinformation and outdated and discredited allegations designed to damage our reputation and profit by deliberately lowering our share prices,” he said.

Despite the FPO being fully underwritten, the group decided to return the funds to the investors and protect their interests.

“The short selling incident resulted in many negative consequences that we had to contend with. Although we immediately issued a thorough rebuttal, various vested interests attempted to exploit the short seller’s claims opportunistically. These entities have engaged in and encouraged false narratives via news and platforms Social Media “.

The Supreme Court of India set up a panel of experts consisting of individuals known for their independence and impartiality to look into Hindenburg’s claims. The committee’s report, published in May 2023, said it found no organizational failures.

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“Not only did the committee’s report note that mitigating measures taken by your company helped rebuild trust, but it also noted credible accusations of destabilizing Indian markets. It also confirmed the quality of our group’s disclosures and found no case of regulatory failure or breach. While SEBI remains In the coming months, we remain confident of our governance and disclosure standards,” Adani said, referring to India’s market regulator.

Since the Hindenburg Report, Adani Group shares have recovered but lost Rs 12.5 trillion in market capitalization when compared to their peak in September 2022.

First published: June 27, 2023 | 12:56 p.m ist