Adani Strongly Confronts Hindenburg Allegations at AGM, Accuses Vested Interests of Writing Report to Harm the Company

Adani Strongly Confronts Hindenburg Allegations at AGM, Accuses Vested Interests of Writing Report to Harm the Company

Indian billionaire Gautam Adani has responded to the allegations made by US-based short-seller Hindenburg Research in January. According to Adani, the report consisted of targeted misinformation and discredited allegations that were authored by vested interests.

This statement comes as a rebuttal to the claims made by Hindenburg Research earlier this year and highlights Adani’s stance on the matter. The controversy surrounding the allegations has drawn the attention of investors and the media, and Adani’s response aims to address and refute the claims made in the report.

Gautam Adani, the Indian billionaire, has accused Hindenburg Research of targeting his conglomerate to damage its reputation and profit from a decline in its stock prices. Adani further stated that to protect the interests of investors, the company decided to return the funds from a fully subscribed Follow-On Public Offering (FPO). Despite issuing a rebuttal to the allegations, Adani believes that the conglomerate continues to face scrutiny from various vested interests.

These statements reflect Adani’s perspective on the situation and shed light on the actions taken by the conglomerate in response to the allegations. Adani’s assertion that the report was motivated by profit-seeking and aimed at tarnishing the company’s image highlights the ongoing challenges and controversies faced by the conglomerate. The response from Adani indicates the company’s commitment to safeguarding investor interests and defending its reputation against what it perceives as unfounded claims.

During the virtual annual general meeting of Adani Enterprises, Gautam Adani directly addressed the allegations made by US short-seller Hindenburg Research in January. The report published by Hindenburg accused the Adani Group of accounting fraud and stock price manipulation, which resulted in a significant decline in the conglomerate’s market value. At its lowest point, the stock market rout had wiped out about USD 145 billion from the company’s market value.

Adani used the AGM as an opportunity to respond to the allegations head-on, asserting that the report was driven by vested interests to harm the company’s reputation and generate profit through stock price manipulation. In light of the allegations and to safeguard investor interests, Adani Enterprises decided to return the funds from a fully subscribed Follow-On Public Offering (FPO). Adani’s remarks reflect the conglomerate’s efforts to defend itself against the damaging claims and address concerns raised by investors and stakeholders following the release of the Hindenburg Research report.

In response to the allegations made by Hindenburg Research, Adani Group has vehemently denied all accusations. To counter the negative impact of the allegations and restore investor confidence, the conglomerate is devising a comprehensive comeback strategy. As part of this strategy, Adani Group plans to recalibrate its ambitions, abandon certain acquisitions, proactively pay off the debt to address concerns about cash flows and borrowings and scale back its pace of spending on new ventures.

Additionally, the promoters of Adani Group have recently sold shares worth Rs 11,330 crore in two tranches to GQG Partners, a leading US-based global equity investment boutique. This move could potentially be aimed at attracting strategic investments and bolstering the company’s financial position.

According to NSDL data, Adani Enterprises raised new debt by pledging 21.4 percent of the shares of Adani Road Transport. This marks a significant increase compared to the 1.95 percent of Adani Road Transport shares that were pledged during the September 2022 bond issue. The move to pledge additional shares indicates the company’s efforts to secure funding and address concerns surrounding its financial position.

Despite the challenges posed by the allegations and the subsequent impact on the conglomerate’s market value, Gautam Adani expressed gratitude for the support shown by stakeholders during these difficult times. Adani emphasized the company’s track record, which he believes speaks for itself.

He also highlighted that Adani Group was successful in raising significant funds from international investors during the crisis, and no rating agency downgraded their ratings. This assertion underscores Adani’s confidence in the company’s resilience and financial standing amid the challenges faced in the aftermath of the Hindenburg Research report.

The statement “This is the strongest validation of beliefs that investors have on Adani Group companies” reflects Gautam Adani’s confidence in the continued support and trust shown by investors in the conglomerate despite the recent challenges and allegations.

In contrast, Bloomberg reported that Barclays Plc is planning to reduce its exposure to the Adani Group. Executives at the highest levels within the bank are reportedly reevaluating their ties with Adani and are exercising more caution in engaging in new business ventures with the group. This increased cautiousness comes amid an ongoing regulatory probe that is expected to conclude next month.

While Barclays has not completely cut ties with the Adani Group, the bank has negotiated repayment terms for certain loans, including financing for a significant cement deal with Holcim AG last year. This development highlights how the recent controversies have prompted some financial institutions to reassess their relationships with the conglomerate and take a more careful approach to conducting business with the group.