According to those acquainted with the situation, Adani Group won’t respond fully to the accusations made by US short seller Hindenburg Research until after the conclusion of a fresh share sale, which is scheduled to end on January 31.
According to bondholders who took part in a conference call with Adani officials, the group owned by Asia’s richest man Gautam Adani had stated that it would provide a thorough rebuttal on Friday. Although it had provided some answers, the lengthy response did not.
One of the people, who asked to remain anonymous since the information is confidential, stated that the group has written a response that is more than 100 pages long and is also seeking legal guidance on when to distribute it. The people did not say when they will respond, but it won’t be before January 31.
The conglomerate’s spokesman declined to respond.
What Is Hindenburg Research and Who Is Gautam Adani? : QuickTake
Just days before the billionaire’s flagship company Adani Enterprises Ltd NSE -18.52% launched India’s largest-ever primary follow-on public offering, which aims to raise 200 billion rupees ($2.5 billion), Hindenburg released its analysis. It was intended to cover capital expenses and reduce the debt owed by its various entities.
The Adani Group, according to Hindenburg, “engaged in a blatant stock manipulation and accounting fraud scheme over the course of decades,” as well as having “significant debt,” according to the company’s two-year probe. The company claimed that its research “relates only to the valuation of securities sold outside of India” and that it is shorting Adani Group through derivatives traded outside of India and US markets.
According to the Bloomberg Billionaires Index, the company lost more than $50 billion in market value in only two sessions, costing Adani more than $20 billion, or over one-fifth of his total wealth.
Asserting that Hindenburg’s study was “maliciously mischievous,” “bogus,” and “unresearched,” Adani Group announced on Thursday that it was considering legal action against the research company.
