New Delhi: Billionaire Gautam Adani-led Adani Group on Wednesday dismissed a report by Hindenburg Research which alleged that the Indian conglomerate had engaged in stock manipulation and accounting fraud schemes over the course of decades.
Jugeshinder Singh, Group CFO, Adani Group in a statement termed the report as a malicious combination of selective misinformation.
“The report is a malicious combination of selective misinformation and stale, baseless and discredited allegations that have been tested and rejected by India’s highest courts,” Singh said.
All Adani Group companies listed on the BSE closed in red on Wednesday with the stock falling in the range of 1.54% to 8.06%. Adani Transmission was the worst-hit during the day with shares tanking as much as 8.06% to Rs 2534.10 a piece. Adani Wilmar was down 5%.
In its report, Hindenburg Research claimed that its findings are based on a two-year investigation which involved speaking with dozens of individuals, including former senior executives of the Adani Group, reviewing thousands of documents, and conducting diligence site visits in almost half a dozen countries.
“Today we reveal the findings of our 2-year investigation, presenting evidence that the INR 17.8 trillion (U.S. $218 billion) Indian conglomerate Adani Group has engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades,” said Hindenburg Research report.
It further said, “Gautam Adani, Founder and Chairman of the Adani Group, has amassed a net worth of roughly $120 billion, adding over $100 billion in the past 3 years largely through stock price appreciation in the group’s 7 key listed companies, which have spiked an average of 819% in that period.”
Vehemently questioning the report, Adani Group in its official statement said that the timing of the report’s publication clearly betrays a brazen, mala fide intention to undermine the Adani Group’s reputation with the principal objective of damaging the upcoming Follow-on Public Offering (FPO) from Adani Enterprises.
“The investor community has always reposed faith in the Adani Group on the basis of detailed analysis and reports prepared by financial experts and leading national and international credit rating agencies. Our informed and knowledgeable investors are not influenced by one-sided, motivated and unsubstantiated reports with vested interests,” the business conglomerate said.
