“Bloated Response Ignores Key Allegations,” according to Hindenburg’s response to Adani.
In its response to the Adani answer, Hindenburg stated that fraud cannot be disguised by nationalism or a bloated response that rejects every significant claim we made.
Hours The US-based short-seller claimed the Adani Group’s 413-page response to Hindenburg Research’s charges of fraud “ignores crucial allegations”
The Adani rebuttal was met by a statement from Hindenburg that said, “Fraud cannot be camouflaged by nationalism or a bloated retort that ignores every important claim we brought.
The Adani Group said in a statement on Sunday that the actions of the American short seller “are nothing short of a deliberate securities fraud under applicable law” and added that it will seek remedies to protect its stakeholders.
In addition to being an unfair attack on a specific corporation, the statement claimed that India, the independence, integrity, and excellence of Indian institutions, as well as India’s growth and aspirations, were also being targeted.
In a statement released today, Hindenburg said that the Adani statement “intended to lead the focus away from real issues and instead fostered a nationalist narrative.”
The success of India itself, it claimed, had been conflated with the Adani Group’s rapid development and Chairman Gautam Adani’s wealth.
“We are at odds. To be clear, we think that India is a thriving democracy and a potential powerhouse, “Hindenburg stated.
The market value of Adani’s flagship company was reduced by $51 billion because to fraud allegations against Hindenburg. According to the short-analysis, seller’s the Adani group had connections to offshore tax havens and its significant debt exposure was concerning. The analysis asserted that the stock price of the Adani Group was overstated and posed serious downside risks.
Following the study, the values of seven listed firms that are part of the Adani group sharply decreased.
Adani Enterprises’ secondary share sale was made available to institutional and retail investors on Friday, but just 1% of the shares were purchased because the company’s stock dropped 11% below the minimum offer price. According to The Adani Group, the sale proceeded as scheduled at the predetermined issue price.