Hindenburg report was designed to defame group, timed to disrupt FPO: Adani

Adani group chairman Gautam Adani on Monday said the allegations made by US-based short-seller Hindenburg Research in a report last year were designed and orchestrated to defame the conglomerate.

Adani, who was speaking at Adani Enterprises Ltd’s 32nd annual general meeting, said the group “fought back” and “proved that no challenge could weaken” the group’s foundations, while also coming out stronger.

“It was designed to defame us. It was a two-sided attack, a vague criticism on our financial standing and at the same time an information distortions campaign dragging us into a political battlefield,” Adani said.

“The attack was a calculated strike two days before the closing of our follow-on public offer (FPO), amplified by a segment of vested media. It was designed to defame us, do maximum damage, and erode our hard-earned market value,” he added.

The conglomerate’s stand against the attack, Adani said, “was further vindicated when the Supreme Court of India affirmed our actions.”

The Supreme Court had in January ruled that petitioners could not provide enough material to transfer the Adani-Hindenburg probe to a special investigation team.

The court disposed of the petitions, finding that the “threshold for a transfer of investigation” had not been made out, It also had made it clear that Sebi is the sole authority that will look into the allegations.

“In addition, our commitment to operational excellence and transparent disclosures was validated not only by rating agencies and the well-informed financial community but also by respected global investors…all of whom chose to invest with us,” he added.

Hindenburg Research had last year claimed that the Indian conglomerate manipulated stock prices through fraudulent means. Adani Group refused the allegations and maintained that it complied with all laws and disclosure requirements.