Hindenburg Replied: With the opening of the stock markets on Monday, everyone's eyes are fixed on the shares of Adani Group companies. America's short selling unit Hindenburg Research had accused Adani Group of fraud, after which the shares of Adani Group companies have fallen drastically in the last few days. Adani Group has issued a 413-page explanation in response to Hindenburg Research's allegations. After this, commenting on the reaction of Adani Group, Hindenburg Research again said on Monday that India is a vibrant democracy and an emerging superpower. Adani group is blocking India's future by systematic loot.
Hindenburg has rejected the Adani Group's allegation that its report was an attack on India. Hindenburg said that fraud cannot be stopped by nationalism. Which ignores every major allegation made by us. The US-based investment research firm said the Adani Group made a "predictable attempt to divert attention from core issues and instead fuel a nationalistic narrative".
Hindenburg Research alleged that the Adani Group attempted to conflate the wealth of its chairman, Gautam Adani, with the success of India. We Disagree To be clear, we believe that India is a vibrant democracy and an emerging superpower with an exciting future. We also believe that the future of India is being stalled by the Adani group, which has wrapped itself in the Indian flag while systematically looting the country.
Claim made in Hindenburg's report
We also believe that fraud is fraud, even if it is committed by one of the richest men in the world. A report by Hindenburg Research claims that a brazen stock manipulation and accounting fraud scheme by the Adani group led to the bloodshed in Dalal Street as the port-to-energy conglomerate lost nearly $50 billion in market value. In a 413-page reply, the Adani Group said the report was driven by "an ulterior motive" of "false market creation" so that the US firm could get financial benefits.
Hindenburg's questions revealed
Adani Group said that of the 88 questions raised by Hindenburg, 65 pertained to matters duly disclosed by Adani portfolio companies. Of the remaining 23 questions, 18 pertain to public shareholders and third parties (and not Adani portfolio companies), while the remaining 5 are baseless allegations based on hypothetical fact patterns. Hindenburg said that Adani failed to specifically answer 62 of the 88 questions raised by the firm and that in the questions it did answer, the group "largely confirmed or attempted to deflect its findings.
Hindenburg's response came days before the final $2.5 billion share sale by Adani Enterprises Ltd, which received an overall subscription of 1% on Friday. Concerns have been raised over the risk aversion of India's top public sector banks and state insurer to the Adani Group, which has been hit its hardest yet after Hindenburg Research described its meteoric rise as the "biggest scam in corporate history". facing the test.
Targeted the central government
India's opposition parties hit out at the Narendra Modi-led central government, alleging high exposure to financial institutions such as Life Insurance Corporation of India (LIC) and State Bank of India (SBI) to the Adani group. Congress general secretary Jairam Ramesh said the risk “has implications for financial stability and the millions of Indians whose savings are held by these pillars of the financial system.
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