- The stock market value of Adani Group was reduced by more than $50 billion.
- Adani group accused the Hindenburg report.
- Adani Enterprises prepares to sell $2.5 billion in shares this week.
Gautam Adani‘s firm has offered a detailed reply to claims of malfeasance made by short-seller Hindenburg Research.
Adani Group describes the research as a “planned attack on India” in a 400-page paper.
Later that day, Hindenburg stated that “Adani failed to specifically address 62 of our 88 queries” in the report.
Last week, the stock market value of Adani Group, an Indian conglomerate, was reduced by more than $50 billion ($40.4 billion).
It also stated that it had followed all local regulations and made all required regulatory disclosures.
“All transactions entered into by us with businesses that qualify as related parties’ under Indian laws and accounting standards have been appropriately declared,” Adani Group said in a 413-page statement released late Sunday.
It went on to accuse the Hindenburg report of being designed to allow the US-based short seller to make profits without providing evidence.
“This is fraught with conflict of interest and is meant simply to establish a phony market in securities to allow Hindenburg, an admitted short seller, to earn significant financial gain through illegitimate means at the expense of innumerable investors,” the statement continued.
The term “short-selling” refers to betting against a company’s share price in the belief that it would fall.
Hindenburg response
In response, Hindenburg said: “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 comes as Adani Group’s flagship firm, Adani Enterprises, prepares to sell $2.5 billion in shares this week.
Hindenburg issued research this week that questioned the Adani Group’s ownership of firms in offshore tax havens such as Mauritius and the Caribbean.
It also said Adani companies had “significant debt” which put the entire group on a “precarious financial standing”.
However, Adani Group announced on Thursday that it was considering “remedial and punitive measures” against Hindenburg Research in the United States and India.
Adani stated that it has always complied with all laws.
Also on Thursday, Hindenburg responded to Adani’s comments, claiming the corporation had not addressed “a single substantive problem we have presented”.
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