A January 24 article on the “ Hindenburg report Adani,” accusing the Indian conglomerate of market manipulation and exploitation of offshore tax havens, sent Adani group stocks — from Adani Enterprises to Adani Ports — tumbling on Dalal Street, despite Adani group’s denial of any wrongdoing. The Adani group likewise denied the Hindenburg report as unfounded. Gautam Adani stated they were astounded when Hindenburg Research issued a study on January 24, 2023, without attempting to contact them or verify the factual matrix.
The article was a nasty concoction of selective falsehoods and old, unsubstantiated, and debunked charges that have been challenged and dismissed by India’s top courts.
Gautam Adani denying all the allegations mentioned under the Hindenburg report Adani
Adani Group has denied all allegations made in the Hindenburg report Adani and is planning a comeback strategy that includes recasting its ambitions, cancelling acquisitions, prepaying debt to address concerns about its cash flows and borrowings, and slowing the pace of spending on new projects. According to NSDL statistics, Adani Enterprises raised the additional loan by pledging 21.4 percent of the shares of Adani Road Transport. During the September 2022 bond issuance, it committed 1.95 percent of Adani Road Transport shares.
Their track record, according to Gautam Adani, speaks for itself. He also expresses gratitude for their stakeholders’ help when they faced these problems. He goes on to say that during the crisis, not only did they raise billions from overseas investors, but no rating agency downgraded their ratings. This is the most robust affirmation of investor confidence in Adani Group firms.
The Hindenburg report Adani did not dent the conglomerates reputation
Although the Hindenburg report Adani reduced the Group’s market valuation by $100 billion in January 2023, the last report produced by the Organised Crime and Corruption Reporting Project has not impacted the Adani Group’s listed firm. The Group’s entire market value was suppressed, Rs. 11 trillion. The business claims that “this is underpinned by consistent value buying from domestic and international investors.”
The conglomerate’s market worth increased by Rs. 7,039 crores, boosting the total market value of its 10 listed firms to Rs. 11.02 trillion, up from Rs. 10.96 trillion. Since early March 2023, the Group’s equities have rebounded from their Hindenburg lows, adding approximately Rs 5 trillion to the Group’s market valuation. Of course, despite the negative coverage, the Group’s ability to acquire more equity capital and keep the grade on its listed bonds has aided it.
Following the Hindenburg Report Adani, which raised several concerns about the company’s debt, the organization has increased its fundraising efforts and project implementation. Power is projected to be a prominent subject in the future as India’s demand for energy rises dramatically as the country’s economy expands. The Group anticipates this trend will transfer into favourable sentiment for Adani Group equities in the coming months.
Adani Power shares were in the spotlight on September 8 after rising 2.88% to a 10-month high of Rs 369.15, surpassing levels set for November 11, 2022. Adani Enterprises, Adani Ports and SEZ, and Adani Wilmar were among the other Adani group firms to register increases. Adani Ports and SEZ witnessed its stock price climb by 1.86%, bringing its market capitalization to more than Rs 1.78 trillion.
Adani Enterprises, the Group’s leading firm, climbed 0.39% to Rs 2519.30 on September 8 2023, worth Rs 2.87 trillion.
The timing of the Hindenburg report Adani release obviously reveals a bold move
According to Jugeshinder Singh, Group CFO, the timing of the report’s publication demonstrates a bold, malicious intention to undermine the Adani Group’s reputation with the primary goal of harming Adani Enterprises’ upcoming Follow-on Public Offering, the largest FPO ever in India. Investors have always trusted the Adani Group based on rigorous research and reports from financial professionals and prominent national and international credit rating organizations.
One-sided and baseless reports with vested interests do not sway their skilled and informed investors. The Adani Group, India’s infrastructure and job creation leader, has a varied portfolio of market-leading enterprises. The Group has always complied with all regulations, regardless of jurisdiction, and upholds the highest corporate governance standards.
The Hindenburg report Adani and its baseless contents were meant to harm the share prices of Adani Group firms since Hindenburg Research, by its admission, stands to gain from a decline in Adani shares. They were highly troubled by a foreign entity’s deliberate and irresponsible attempt to mislead the investing community and the broader public, harm the goodwill and image of the Adani Group and its executives, and sabotage Adani Enterprises’ FPO (Follow-on Public Offering).
They assess the applicable sections of US and Indian legislation for corrective and punitive action against Hindenburg Research.