Adani Group Counters Questions To Hindenburg Research

Finally the Adani group countered questions which were raised by Hindenburg. Adani group termed the 413-pages report as false blames with a malafide intent.

The Adani Group responded to the claims made by short-seller Hindenburg Research on Sunday, calling the research a fake narrative created with malicious purpose and a lack of grasp of Indian legislation.

The Adani group responded to the Hindenburg Research report published last week in a 413-page document, claiming that it was “a vicious combination of selective falsehoods and withheld facts linked to spurious and debunked charges to promote an ulterior goal.” 

Conflicts of interest abound here, and the main goal is to inflate the price of assets so that Hindenburg, a self-avowed short seller, can illegally earn a big profit at the expense of innumerable investors.

The report, according to the Adani group, displayed contempt for Indian institutions, including the regulators and the judiciary, as well as a selective and deceptive presentation of facts that were already in the public domain in order to fabricate a story. 

It also claimed to be completely ignorant of the applicable accounting and legal standards in addition to industry practice. 

The study asks “88 questions,” 65 of which are related to information that Adani Portfolio firms have properly disclosed in their annual reports, which are accessible on their websites along with occasional memoranda, financial statements, and stock exchange disclosures. 

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Of the remaining 23 questions, 18 concern public shareholders and other parties (rather than the Adani portfolio firms), while the remaining 5 are unfounded charges based on fictitious data, according to the Adani group.

In response to specific claims made against Rajesh Adani, the younger brother of Gautam Adani, the DRI, Vinod Adani and several entities, as well as Samir Vora, the younger brother of Gautam Adani, the Adani Group stated, “Each of the foregoing matters is concluded and dismissed in our favor. 

Additionally, we have revealed this in the open, and all of our stakeholders are aware of this. These have only been mentioned in an effort to support the lying narrative.

Regarding the claims that more than 70 organizations and people, including Adani promoters, were the subject of investigations and prosecutions by SEBI for manipulating Adani stock between 1999 and 2005, the Adani group responded, “There are no continuing proceedings against the Adani promoters before SEBI in connection to this matter and all past cases before SEBI have been closed. 

Additionally, we have properly disclosed these, and our stakeholders are already familiar with them.

The business responded to allegations that a SEBI judgment found that Adani promoters helped Ketan Parekh manipulate the price of Adani Exports shares by aiding and abetting him, saying, “The allegation in regard to Ketan Parekh cooperating with Adani companies is wrong.”

According to the Hindenburg study, Adani’s seven primary listed firms have a combined total of 578 subsidiaries and 6,025 distinct related-party transactions in just the fiscal year 2022. 

The Adani Group responded, stating that “Hindenburg’s utter ignorance of the organizational frameworks and needs of infrastructure businesses is the root of this charge once more. 

Companies often need to operate with a ring-fenced project finance structure for infrastructure operations in India and many other jurisdictions, where each project is housed in a distinct company and funding is raised against the unique project assets.

Adani Enterprises has had 5 chief financial officers over the span of eight years, which is another issue brought up by the US short-seller business as a potential sign of accounting problems. 

“Again, Hindenburg has attempted to distort the truth in order to fit their story and has utterly misconstrued the facts regarding our CFOs. 

The truth is that numerous of the CFOs that Hindenburg alleges have departed are really still employed by the company in a number of different jobs, including taking on more significant or important roles as part of our growth narrative, according to Adani.

Concerning claims that several Mauritius-based companies, including APMS Investment Fund, Cresta Fund, LTS Investment Fund, Elara India Opportunities Fund, and Opal Investments, may be connected to the promoter group by their collective ownership of almost $8 billion in shares of Adani-listed companies, the Adani Group responded, “Each of the enterprises referenced in queries above are public shareholders in the listed companies in the Adani Portfolio. Any suggestions that they are somehow connected to the promoters are false.