Gautam Adani’s scathing take on Hindenburg report, calls it ‘targeted misinformation’ to earn profits

Gautam Adani’s scathing take on Hindenburg report, calls it ‘targeted misinformation’ to earn profits:

In the Adani Group’s annual report for 2022-23, Gautam Adani, Chairman of the conglomerate, addressed the shareholders and expressed his views on the report published by Hindenburg Research, a US-based short seller. Adani stated that the report contained targeted misinformation and outdated, discredited allegations. He believed that the intention behind the report was to harm the reputation of the Adani Group and profit from a deliberate decrease in its stock prices. Adani emphasized that the group maintains confidence in its governance and disclosure standards.

Adani further mentioned a significant event related to the timing of the report’s release. He noted that the report was published just as the Adani Group was preparing to launch the largest Follow-on Public Offering (FPO) in India’s history. Despite the FPO being fully subscribed, the group made the decision to withdraw and return the money to investors in order to protect their interests.

Gautam Adani conveyed the group’s commitment to consolidating what it has achieved and expanding its horizons. The conglomerate remains focused on its growth trajectory and continues to have faith in its governance practices and transparency.

In his address to the shareholders, Gautam Adani acknowledged the adverse impact of the report on the Adani Group. He highlighted that despite issuing a comprehensive rebuttal to the report in a timely manner, various vested interests attempted to exploit the claims made by the short seller. Adani stated that these entities engaged in spreading false narratives across different news and social media platforms.

The chairman’s statement suggests that the Adani Group faced challenges in dealing with the aftermath of the report. The company had to address and counter the false narratives propagated by certain parties who sought to take advantage of the situation. By emphasizing this, Adani aimed to convey the existence of external forces attempting to manipulate public perception and undermine the reputation of the conglomerate.

Gautam Adani highlighted that the Supreme Court of India formed an Expert Committee to investigate the allegations made against the Adani Group. According to Adani, the committee’s report, which was made public in May 2023, did not find any regulatory failure on the part of the conglomerate. He mentioned that the report acknowledged the mitigating measures taken by the company, which helped rebuild confidence. Additionally, the report reportedly cited credible charges of concerted destabilization of the Indian markets and affirmed the quality of the Group’s disclosures, finding no instances of regulatory failure or breach.

It is worth noting that Hindenburg Research had released its report in January, accusing the Adani Group of various financial misdeeds, including stock manipulation and fraudulent transactions. However, Adani’s statements indicate that the Expert Committee’s findings contradict the allegations made by Hindenburg Research.

By referencing the Expert Committee’s report, Adani aimed to counter the allegations raised by Hindenburg Research and assert the credibility of the Adani Group. He sought to assure shareholders that the company’s governance and disclosure standards remain robust, as affirmed by the Supreme Court-appointed committee.

In his address to the shareholders, Gautam Adani, Chairman of the Adani Group, provided an overview of the company’s financial performance for the fiscal year 2022-2023. He emphasized that the operational and financial results of the Adani Group not only testified to its success but also reflected its ongoing efforts to expand its customer base in both the business-to-business (B2B) and business-to-consumer (B2C) segments.

Adani commended the Adani Group’s ability to acquire companies and effectively turn them around, contributing to its expansion across the national landscape. He acknowledged the significant role played by these acquisitions in fueling the conglomerate’s growth. Moreover, he highlighted the group’s national and international partnerships as evidence of its strong governance standards. The success achieved by the Adani Group in international expansions, particularly in countries like Australia, Israel, Bangladesh, and Sri Lanka, further validated its scale of operations and demonstrated its ability to operate in diverse markets.

Turning to the financial performance of the company, Gautam Adani revealed impressive growth figures. The Adani Group’s total income witnessed a remarkable increase of 96 percent, reaching Rs 1,38,715 crore. This growth in revenue reflected the group’s ability to generate substantial income from its various businesses. Additionally, the group’s total profit after tax (PAT) experienced extraordinary growth, expanding by 218 percent to reach Rs 2,473 crore. These figures demonstrated the financial strength and profitability of the Adani Group during the fiscal year.

Gautam Adani expressed his satisfaction with the company’s financial performance and attributed its success to several factors. He highlighted the expansion of the customer base as a key driver of growth, emphasizing the group’s ability to cater to the needs of both B2B and B2C customers. Furthermore, Adani praised the pace at which the conglomerate executed acquisitions and successfully turned them around, leading to enhanced business operations and market presence.

The Chairman also underscored the significance of the Adani Group’s national and international partnerships. These collaborations served as a testament to the group’s strong governance standards and its ability to forge successful alliances with entities around the world. The success achieved by the Adani Group in expanding internationally, particularly in Australia, Israel, Bangladesh, and Sri Lanka, further validated its capabilities and highlighted its effective market penetration strategies.

In conclusion, Gautam Adani’s summary of the Adani Group’s financial performance for the fiscal year 2022-2023 showcased the company’s success and its continued focus on expanding its customer base. He highlighted the group’s achievements in acquisitions, national and international partnerships, and international expansions, while also emphasizing the strong financial growth with a significant increase in total income and total PAT. The Adani Group’s financial performance and strategic initiatives demonstrated its ability to thrive in diverse markets and maintain robust governance standards.