NEW DELHI: Adani group is examining legal options to take “punitive action” against the US-based investment research firm Hindenburg Research after the latter published a report where it accused Adani of stock market manipulation, called the share prices of its 7 listed companies ‘over valued’, questioned the role of close family members among other serious allegations.
This is the third time in two days that Adani Group has issued a statement to dismiss the Hindenburg report. Post the statements, Hindenburg hit back at Adani and said the Group did not answer a single question they raised.
“At the conclusion of our report, we asked 88 straightforward questions that we believe give the company a chance to be transparent. Thus far, Adani has not answered any of these questions. Instead, as expected, Adani has resorted to blister and threat.” Hindenburg said they welcome Adani’s threat as they standby the report and believe any legal taken against them would be meritless.
“If Adani is serious, It should file suit in the US where we operate. We have a long list of documents we would demand in a legal discovery process,” it said. The port-to-power conglomerate promoted by Gautam Adani said the report has adversely affected Adani Group, its shareholders and investors. Just before launching of the Rs 20,000 crore mega follow-on public offer (FPO) of Adani Enterprises, Adani Group shares fell up to 10% in Wednesday’s trading session. The combined market capitalisation of the Group stocks tanked by about Rs 97,000 crore as all the 10 listed companies owned by Adani closed with a cut on Wednesday.
“Maliciously mischievous, an unresearched report published by Hindenburg Research on January 24, 2023, has adversely affected Adani Group, our shareholders and investors. Volatility in Indian stock markets created by the report is of great concern and has led to unwanted anguish for Indian citizens,” said Jatin Jalundhwala, Group Head - Legal, Adani Group.
He added, “We are evaluating relevant provisions under US and Indian laws for remedial and punitive action against Hindenburg Research.” Hindenburg, a US-based firm specialising in activist short-selling, said on Wednesday its two-year investigation revealed Adani Group has “engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades”.
The report details a web of Adani-family-controlled offshore shell entities in tax havens spanning the Caribbean and Mauritius to the UAE, which it claims were used to facilitate corruption, money laundering and taxpayer theft while siphoning off money from the group’s listed companies.
Truth or dare