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In response to the claims surrounding Adani scandal, Gautam Adani stated that the publicly traded company has no control over who owns, purchases, or sells its shares. It is optional for a listed company to have information about its investors and public shareholders. Hindenburg’s allegations against the Adani Group are based on deliberate disregard for Indian legal procedures and regulations. They have maliciously ignored that the offer for sale (OFS) process in India is regulated.
It is carried out through an automated order book matching process on the stock exchange platform, raising various concerns about the offer made by Adani Green Energy Limited in 2019. The buyers are hidden from all platform users; this is not a process governed by any organisation.
Manipulated narrative in the Adani scandal case
The report’s stated questions, according to Gautam Adani, were deemed “false suggestions based on malicious misrepresentation of governance practises”, “manipulated narrative around unrelated third party entities”, or “biased and unsubstantiated rhetoric”. They affirm once more that they abide by all relevant laws and rules. To safeguard the interests of all their stakeholders, they are dedicated to upholding the strictest standards of governance. Internal solid and audit controls are also features of the Adani Portfolio.
Every listed business in the Adani Portfolio has a robust governance structure. Despite the Adani scandal controversy surrounding the Group, the goal of the Adani portfolio and the Adani verticals is to advance national development and globalise India, the statement stated. The Adani Group reserves the right to add to this statement or to respond further to any of the accusations or contents of the Hindenburg report.
The Adani Group will exercise its right to pursue remedies to protect its stakeholders before all relevant authorities. Hindenburg’s allegations against the Adani Group are based on deliberate disregard for Indian legal procedures and regulations. For example, they have maliciously ignored that the offer for sale (OFS) process in India is regulated. It is carried out through an automated order book matching process on the stock exchange platform, raising various concerns about the offer made by Adani Green Energy Limited in 2019.
The buyers are hidden from all platform users, which is not a process that any organisation governs.
Adani Enterprises’ impressive stock market surge breaks the Hindenburg jinx
A day after the Gautam Adani-owned conglomerate prepaid loans totalling $1.1 billion to release pledged shares of some Group companies, shares of several listed Adani Group companies have recovered sharply on the stock market. After being battered for over two weeks by the stock market, the Group appears to be regaining its footing in the wake of a damning report published by US short-seller Hindenburg Research.
The conglomerate’s main business, Adani Enterprises, was up more than 15% even though benchmark stock market indices were trading lower. Adani Wilmar also saw a notable 5% gain in advance of its Q3 results. Adani Transmission, Adani Ports, and Adani Special Economic Zone—all of which have previously released their third-quarter financial statements—also saw positive trading. Cement companies owned by Adani, ACC and Ambuja Cement were also seeing increases in their stock prices, and NDTV was up almost 1%.
Adani stocks at peak since Adani scandal
The market value of Adani stocks has increased by roughly $10 billion, making this the most significant rise since the Adani scandal was revealed in January 2023. On May 22, 2023, Adani Group shares shot higher, continuing to rise after the findings of an Indian court panel’s report refuted US short-seller Hindenburg Research’s allegations of stock-price manipulation. So far, the market value of the 10 Adani stocks has increased by roughly $10 billion, which is expected to be the most significant gain since Hindenburg’s damning report from January 2023.
Flagship Adani Enterprises Ltd. increased by over 17%, bringing its progress on May 19, 2023, to 3.5%. Traders reported that investors were more likely to place new long bets on the Group as trapped short positions were being unwound aggressively. According to Deepak Jasani, head of retail research at HDFC Securities Ltd., “the interim report is helping because the fear of further inquiries against the Group will reduce.” It has given the Group a clean sheet.
This is a big step, even though the perception of foreign investors will gradually change. The Securities and Exchange Board of India relieved the Group against one of the main accusations made by Hindenburg by informing a panel appointed by the Supreme Court that it had not discovered any evidence of stock price manipulation or abusive trading patterns.
Adani Wilmar Ltd. experienced a 10% daily limit surge, while Adani Green Energy Ltd., Adani Transmission Ltd., Adani Total Gas Ltd., and Adani Power Ltd. increased by their 5% daily limit. Special Economic Zone Ltd. and Adani Ports increased by more than 8%.
