Saturday, July 13, 2024
HomeNews Reports'Conflict of interest, calculated attack on India': Adani Group responds to claims of Hindenburg...

‘Conflict of interest, calculated attack on India’: Adani Group responds to claims of Hindenburg Research report with a 413-page response

While highlighting its compliance with local laws, Adani Group said, "All transactions entered into by us with entities who qualify as 'related parties' under Indian laws and we have duly disclosed accounting standards.

Days after Hindenburg Research accused the Adani Group of stock manipulation and use of tax havens, the latter slammed the US-based investment research firm with a 413-page response on Sunday (January 29).

The Indian conglomerate suffered a loss of $48 billion in stock markets after Hindenburg Research published its 32,000-word report.

While highlighting its compliance with local laws, Adani Group said, “All transactions entered into by us with entities who qualify as ‘related parties’ under Indian laws and we have duly disclosed accounting standards.

It pointed out how the US-based investment research firm sought to benefit from its damning report.

“This is rife with conflict of interest and intended only to create a false market in securities to enable Hindenburg, an admitted short seller, to book massive financial gain through wrongful means at the cost of countless investors,” the Adani group emphasised.

The Indian conglomerate also dismissed the misleading claims that Hindenburg Research made about its offshore entities, without furnishing any credible evidence.

Following credit analysis, it further defended its decision to pledge shares of its group companies, owned by promoters and key shareholders, to secure loans as a globally accepted practice.

“It is tremendously concerning that the statements of an entity sitting thousands of miles away, with no credibility or ethics has caused serious and unprecedented adverse impact on our investors,” it further added.

In its 413-page report, the Adani Group included snippets from its annual reports, court verdicts and public disclosures. The Indian conglomerate also responded to the 88 questions raised by Hindenburg Research to cast aspersions on its credibility.

Interestingly, 65 of the questions pertaining to the Adani Group were disclosed by the conglomerate in its previous annual reports.

“Of the balance 23 questions, 18 relate to public shareholders and third parties (and not the Adani portfolio companies), while the balance 5 are baseless allegations based on imaginary fact patterns,” it added.

“Not one of these 88 questions is based on independent or journalistic fact finding. They are simply selective regurgitations of public disclosures or rhetorical innuendos colouring rumours as fact,” the Adani Group further emphasised.

The Adani group also exposed the three-step ‘modus operandi’ of Hindenburg Research.

“Selective and manipulative presentation of matters already in the public domain to create a false narrative, Complete ignorance or deliberate disregard of the applicable legal and accounting standards as well as industry practice, contempt for the Indian institutions including the regulators and the judiciary,” it said.

The Indian conglomerate also questioned the credibility of the US-based investment research firm and its tall claims.

“Ironically for an organization that seeks transparency and openness, nothing much is known about either Hindenburg or its employees or its investors. Its website alleges that the organisation has an experience that “spans decades” and yet appears to have been set up only in 2017,” it pointed out.

Adani Group dismisses Hindenburg research report as a calculated attack on India

The Adani Group noted, “The mala fide intention underlying the report is apparent given its timing when Adani Enterprises Limited is undertaking what would be the largest ever further public offering of equity shares in India.”

This is not merely an unwarranted attack on any specific company but a calculated attack on India, the independence, integrity and quality of Indian institutions, and the growth story and ambition of India,” it concluded.

Earlier on January 25, the Adani Group trashed the Hindenburg Research report as a ‘malicious combination of selective misinformation and stale, baseless and discredited allegations. It had also come under attack from the Indian National Congress, which accused the Indian conglomerate of crony capitalism.

Hindenburg stands by its report, hit back on Adani

Hindenburg Research, in the meanwhile, has stood by its report and stated, “Fraud cannot be obfuscated by nationalism or a bloated response that ignores every key allegation we raised.”

It has stated that contrary to Adani’s claim, they believe that India is a vibrant democracy with an exciting future and companies like Adani are holding India back. It added that Adani’s 413-page rebuttal has only 30 pages that focus on the issues raised and added that Adani has failed to answer 67 of the 88 questions raised by them. The complete response can be read here.

Join OpIndia's official WhatsApp channel

  Support Us  

Whether NDTV or 'The Wire', they never have to worry about funds. In name of saving democracy, they get money from various sources. We need your support to fight them. Please contribute whatever you can afford

OpIndia Staff
OpIndia Staff
Staff reporter at OpIndia

Related Articles

Trending now

‘Censor speech, and we won’t fine you’: Elon Musk reveals ‘secret deal’ offered by EU as it accuses X of breaching DSA online content...

"The European Commission offered 𝕏 an illegal secret deal: if we quietly censored speech without telling anyone, they would not fine us. The other platforms accepted that deal. 𝕏 did not," Musk tweeted.

‘Illegal’ encroachments, slaughtering of animals, damaged temples: Hindus protest at Vishalgadh, demand restoration of its ‘falling’ legacy, crucial discoveries from ground

As per the documents exclusively obtained by OpIndia, there are a total of 156 properties that have undertaken illegal expansion of the homes and shops by building iron sheet sheds. Among these 156, around 100 plus properties belong to the Muslim community people who are said to have illegally encroached on the area around the old Dargah and the firm extended Masjid covered by iron sheets.

Recently Popular

- Advertisement -