TeaAdani-Hindenburg dispute increased in war of wordss Over the weekend, Adani Enterprises released a 413-page please respond on Hindenburg Research’s original allegations late Sunday, calling the company “the Madoffs of Manhattan.” the group said in the statement he research firm The report is “a malicious combination of selective misinformation and hidden facts relating to baseless and defamatory allegations to drive an ulterior motive.”
Hindenburg Research quickly responded to Adani’s reply, uploading It issued its own rebuttal on Monday morning, saying that “in terms of substance, Adani’s ‘413 page’ response consisted of approximately 30 pages focused on issues related to our report.”
The remainder of the response, Hindenburg states 330 pages of court records and 53 pages of high-level financials, general information, and details on “irrelevant corporate initiatives, such as how it encourages female entrepreneurship and the production of safe vegetables”.
Adani has accused Hindenburg of being unethical, and of violating securities and foreign exchange laws, which Hindenburg disclosed in his original report. research firmsaid the Adani Group sidestepped the most serious allegations against it – those relating to Vinod Adani, the elder brother of Chairman Gautam Adani, his alleged shell companies and his alleged dealings with Adani Group firms.
This issue has reached this point after last week report good Allegations by Hindenburg Research that the Adani group was involved in corporate misconduct resulted in the stock price going higher and highersong Leveraged group companies. Adani issued a decree feedback Shortly after that release, while rejecting the charges and threatening legal action against Hindenburg, some fail To lower the Hindenburg back down.
During this, the listed entities of Adani Group saw their glory share prices fall fast On Wednesday, the day after the original report was released, and extended The fall came on Friday after the markets reopened after the Republic Day holiday. In two trading days, Adani companies got listed lost 4.17 lakh crore combined in market capitalisation.
The implications of the case go beyond just stock prices. This also definitely resulted in poor Adani Enterprises reacts to Follow-on Public Offer (FPO) and Congress party gets another field Attack Against Modi government for alleged close ties And Silent support of Adani group.
Read also: Adani Enterprises, Adani Ports steady in morning trade
A fight for ‘Bharat’
In its response on Sunday, the Adani Group claimed that the Hindenburg report was not just an attack against a specific company, but “a thought-provoking account of India, the freedom, integrity and quality of Indian institutions, and the story and ambition of growth”. It was an attack.” India.”
Hindenburg later said in his response that conglomerate was trying to confuse the rise of his president, Gautam Adani, Same with India’s success.
Hindenburg said, “To be clear, we believe that India is a vibrant democracy and a rising superpower with an exciting future.” saying that they It also believes that India’s future is being blocked by the Adani group, which has “wrapped itself in the Indian flag while systematically looting the nation.”
“We also believe that fraud is fraud, even if it is committed by one of the wealthiest men in the world,” it added.
about the allegations
Overall, Adani’s response told that most of the issues raised by Hindenburg have already been disclosed by Adani companies, while the rest are either related to unrelated companies or are baseless allegations.
The “(Hindenburg) report” seeks answers to 88 questions – 65 of which pertain to matters disclosed by Adani portfolio companies in their annual reports available on their website, as well as from time to time in their memorandum, financial statements and offer stock exchange disclosures. Time,” said Adani’s response. “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 fictitious fact patterns.”
Nevertheless, the Group said it would attempt to answer all 88 questions, as Hindenburg asked Was failed to do.
“Our report asks 88 specific questions to the Adani group,” Hindenburg said. “In its response, Adani failed to specifically answer 62 of them. Instead, it primarily groups questions together into categories and provides generalized deflections.
this couple In other cases, Adani merely pointed to its own filings and sidestepped questions or relevant matters, again failing to address the issues raised. “It asked some questions, its answers largely confirmed our findings, as we detailed.”
sibling behavior issues
Hindenburg said that the Adani Group had failed to answer questions, particularly relating to the most serious allegation made in its report – that the Adani Group had entered into questionable billion-dollar deals with Gautam Adani’s brother Vinod Adani, including several offshore Shell companies were involved. , These deals, Hindenburg said, “raised serious questions about stock and accounting manipulation”.
The report cited several instances where deals were struck with companies based in Mauritius and allegedly owned by Vinod Adani Part of Adani Group, which were unannounced.
For example, in questions 40, 42, 48, and 50 (and several others), Hindenburg asks about transactions that allegedly took place between Adani companies and Krunal Trade & Investment, Vakodar, Rehwar Infrastructure, Milestone Tradelink and Gardenia Trade & Investment – all Mauritius-based companies – and all transactions that were allegedly not disclosed to Indian regulators.
In its statement, Adani said, “The above quoted transactions with Krunal Trade & Investment, Wakodar, Rehwar Infrastructure, Milestone Tradelink, Gardenia Trade & Investment and ‘private Adani entities’ are not ‘related party transactions’ under Indian laws or accounting standards ” Answer this set of questions. “As a result, we are neither aware nor need to be aware of their ‘source of wealth’.”
Hindenburg raised major issues with this argument, claiming that Although it provided detailed evidence Display Existence of multiple shell companies allegedly owned by Vinod Adani, Adani Group reacts In college Instead of negating transactions sidelined family ties took Location.
“In other words, we are expected to believe that Gautam Adani has no idea why his brother Vinod lent huge sums of money to Adani entities, and has no idea where the money came from.” report added,
“If any of this were true, Gautam could easily call his brother, or ask him at the next family dinner, why he is directing billions of dollars to Adani-controlled entities through a network of opaque offshore shell entities. have been , ” it said. “He could as well call the head of his own family investment office and ask the same thing.”
Read also: Indian stocks volatile due to fall in major Adani shares
attack on hindenburg
In response to this, Adani Group also attacked the research. Strong, claiming that, as a short-seller, it had ulterior motives that were unethical. A short-seller is basically a stock market operator who takes a position such that they profit from a fall in the price of a particular stock, such as what happened with Adani shares.
“After extensive research, we have taken short positions in Adani group companies US-traded bonds and non-Indian-traded derivative instruments,” Hindenburg had disclosed in its original report on the Adani group.
To which the group replied, “Hindenburg has not published this report for any altruistic reasons, but purely out of selfish motives and in flagrant violation of applicable securities and foreign exchange laws.
It states that the research firm Took ‘short positions’ and then, in order to influence the stock price to spiral downward and make false profits, Hindenburg published a document to manipulate and drive down the stock price and create a false market.
“The allegations and insinuations, which were presented as fact, spread like fire, wiping out vast amounts of investor money and turning a profit for Hindenburg,” Group Told. “The net result is that public investors lose out and Hindenburg makes a windfall. Thus, the report is neither ‘independent’ nor ‘objective’ nor ‘well researched’.
(Edited by Tarannum Khan)
Read also: Adani Group’s market losses widen to $65 billion after short-seller attack