Adani Group slams ‘Hindenburg attack on India’ as shares hit $70 billion

New Delhi

the promise me Groupe has accused a US investment firm of launching a “calculated attack” on India by publishing a report alleging widespread fraud in the port conglomerate to power.

Hindenburg Research released its report on billionaire Gautam Adani’s business last week, accusing the group Of the “brazen stock manipulation and accounting fraud scheme spanning decades.” It said it had taken a short position in Adani Group companies, meaning it would benefit from a decrease in its value.

Since the Hindenburg Report, Adani’s business empire has been lost More than 70 billion dollars of the stock market value. The infrastructure mogul’s net worth has also fallen by about $30 billion, according to Bloomberg Billionaires Index.

He remains the richest man in Asia with a personal wealth of over $92 billion, which is $10 billion more than Indian businessman Mukesh Ambani.

The Adani Group had already denounced the Hindenburg report as “unfounded” and “harmful” in its initial response just hours after the report was released, and said on Thursday that it was studying Legal action. This was followed on Sunday by a long and furious rebuttal, running to more than 400 pages, in which it was presented He called Hindenburg’s claims “unsubstantiated and open to credibility” and said the research firm had an “ulterior motive”.

“This is riddled with conflicts of interest and only aims to create a fake stock market to enable the Hindenburg, a recognized short seller, to make huge financial gains through unlawful means at the expense of countless investors,” it said.

The 60-year-old businessman founded the Adani Group more than 30 years ago and is seen as a close ally of India’s current Prime Minister Narendra Modi.

Before the crash, which rippled through the Mumbai Stock Exchange on Monday, markets were cheering the businessman and his exuberant pace of expansion. Investors were betting on the ability of the self-made industrialist to grow his business in sectors that Modi prioritized for development.

In its detailed response on Sunday, the Adani Group portrayed the US short seller’s report as an “attack” on India, its economy and its investors.

She added, “This is not just an unprovoked attack on any particular company, but a calculated attack on India, the independence, integrity and quality of Indian institutions, and the story of India’s growth and ambition.”

Hidenburg finished her report last week with 88 questions for Adani’s group. These ranged from asking for details about the group’s external entities, to why there was “such a complex and interconnected corporate structure”.

The Indian group described the questions as “rhetorical allusions that paint rumors as fact.” She then endeavored to answer it and published some tables and charts to support her position.

The long appeal sought to reassure investors about the group’s debt, banking relationships and corporate governance practices. Shares of Adani Enterprises, the group’s flagship company, rose more than 4% on Monday, but most Adani shares extended last week’s losses.

The group’s chief financial officer, Jugeshinder Singh, compared the Indian market’s reaction to one of the most harrowing episodes from the country’s colonial past under British rule.

“At Jallianwala Bagh, one Englishman gave an order, and the Indians shot the other Indians. Am I surprised at the behavior of some fellow Indians? No,” Singh said. Daily mint action In an interview published on Monday.

On April 13, 1919, British Brigadier General Reginald Dyer ordered his soldiers to fire without warning on a peaceful protest of thousands of defenseless people in the Jallianwala Bagh public park. in the city of Amritsar. They stopped firing after 10 minutes when they ran out of ammunition. The apocalyptic event is now known as Jallianwala Bagh or Amritsar massacre.

Hindenburg’s allegations come at a sensitive time count me. It aims to raise 200 billion rupees ($2.5 billion) by issuing new shares in Adani Enterprises this month. The show will close on Tuesday.

Hindenburg responded to Adani’s rebuttal by saying “Nationalism cannot obscure fraud”.

She said in a post dated Twitter Sunday.

Hindenburg added that the group had ignored “every major allegations that we have raised”.

“In essence, Adani’s 413-page response contained only about 30 pages focused on issues related to our report,” she said.

“The remainder of the response consists of 330 pages of court records, along with 53 pages of high-level financial statements, general information, and details of unrelated corporate initiatives, such as how they encourage female entrepreneurship and safe vegetable production.”

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