In this lengthy publicity picture, the brand of the Adani Group is seen on a constructing in Mumbai on January 27, 2023.
| Photo Credit: Reuters
Ahmedabad-based Adani Group on Sunday night time issued an in depth rebuttal to the allegations of “stock manipulation and accounting malpractices” levelled by U.S.- based mostly brief vendor Hindenburg Research, dismissing all allegations and calling the Hindenburg report as an “attack on India and its independent institutions”.
Editorial | Warning bells: On the Adani saga
In a 413-page rejoinder issued earlier than markets open on Monday, the Adani Group mentioned the report was “baseless” and “driven by an ulterior motive to create a false market” and permit the U.S. agency to make monetary good points.
“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 mentioned.
It additional mentioned “Hindenburg Research has conveniently ignored the Indian judiciary and regulatory framework”.
This is the primary detailed response of the group led by self-made billionaire Gautam Adani after the U.S. agency in a media assertion on January 26 mentioned it could “welcome” the Adani Group’s menace of authorized motion. The brief vendor had mentioned that its investigation report was ready over a interval two of years and concerned visits to a number of international locations, mining of paperwork and knowledge and speaking to executives who had labored with the Indian conglomerate.
Stressing that the group and its varied entities are in compliance with the relevant legal guidelines, Adani Group added that each one of its listed entities have a “robust governance framework”.
It additionally reiterated in its assertion that it could discover authorized choices. “We will exercise our rights to pursue remedies to safeguard our stakeholders before all appropriate authorities and we reserve our rights to respond further to any of the allegations or contents of the Hindenburg report,” it mentioned.
The report, which triggered a sell-off within the group’s shares, comes at a time when Adani Enterprises, the group’s flagship agency, has launched a ₹20,000 crore follow-on public provide (FPO).
The group has additionally rubbished the 88 questions the Hindenburg report comprises. “They are simply selective regurgitations of public disclosures or rhetorical innuendos colouring rumours as fact… Hindenburg has not published this report for any altruistic reasons but purely out of selfish motives and in flagrant breach of applicable securities and foreign exchange laws,” the rejoinder said.
In its report launched on January 24 within the U.S., Hindenburg Research raised issues concerning the Gujarat-based conglomerate’s “substantial debt” that had put your entire group on a “precarious financial footing”.
It additionally made allegations concerning the company governance construction, hyperlinks with offshore entities based mostly in tax heavens like Mauritius and inventory manipulation.
Source: www.thehindu.com
