Delhi, 19th July 2023: Gautam Adani, the chairman of the Adani Group, addressed the allegations made in the Hindenburg report during the 31st Annual General Meeting (AGM) of the company. Adani categorically refuted the report, labeling its allegations as false and malicious, with the intent to harm the reputation of the company. The Hindenburg Research, a US-based short-seller, had accused the group of stock manipulation and accounting fraud in a report published just before the launch of Adani Enterprises’ follow-on public offer (FPO) worth Rs 20,000 crore.
In a video message, Gautam Adani criticized the Hindenburg Research report as a deliberate combination of “targeted misinformation and discredited allegations.” He clarified that most of the allegations referenced the period between 2004 and 2015, and were already addressed and resolved by the relevant authorities during that time. Adani emphasized that the report was a malicious attempt to tarnish the company’s reputation and profit from a temporary reduction in stock prices.
The release of the Hindenburg report had a significant impact on the Adani Group, leading to a substantial decline in the market value and share prices of its listed companies. Additionally, the highly anticipated Rs 20,000 crore follow-on public offering (FPO) for Adani Enterprises Ltd. was canceled despite being fully subscribed. Adani acknowledged that despite issuing a comprehensive rebuttal, various vested interests and entities propagated false narratives across news and social media platforms, seeking to exploit the claims made by the short seller.
During his address, Gautam Adani expressed gratitude to all those who contributed to the company’s success and emphasized that the true ambitions of the Adani Group are yet to be fully realized. He reassured stakeholders, affirming the group’s resilience, unwavering commitment to long-term objectives, and steadfast dedication to upholding its strong market position.
In March, following the release of the Hindenburg report, the Supreme Court established a six-member expert committee to investigate any regulatory failures in addressing the alleged contravention of securities market laws by the Adani Group or other companies. The court also directed the Securities and Exchange Board of India (SEBI) to conduct an investigation into potential breaches of minimum public shareholding regulations in publicly traded companies.
