Adani Group says short sale report is ‘calculated attack on India’

Adani Group says short sale report is ‘calculated attack on India’

India’s Adani Group has issued an angry rebuttal to allegations of fraud by Hindenburg Research, a short seller that lost more than $50 billion from its value last week, to calm investors amid a $2.4 billion stake sale. Announced.

In this document, which contains 54 pages plus about 350 appendices, Billionaire Gautam AdanI said the Hindenburg report had a “significant and unprecedented adverse impact on our investors.”

It said the allegations were “not just an unjustified attack on a particular company, but a calculated attack on India, the independence, integrity and quality of Indian institutions and India’s growth story and ambition.”

New York-based Hindenburg released the results of its two-year study last week. Adani Has been involved in “brazen stock manipulation and accounting fraud” for decades.

By the close of trading on Friday, the report will be about 20%, or Over $50 billion from Adani Group’s listed company valueShares of Indian banks and insurance companies with business exposure also fell.

Adani Enterprises, one of its group companies, said over the weekend that its subsequent public offering would go ahead as planned despite concerns that it would struggle to attract investors.

The offering aims to expand the shareholder register of a vast industrial group, many of which are now owned by related entities and Mauritius-based funds.

Shares of Adani Enterprises closed at Rs 2,761.45 on Friday.

The offering will start on Friday and books will close on Tuesday.

“There is no change to the schedule nor to the issue price,” Adani said on Saturday. “All stakeholders, including bankers and investors, [offering]We are very confident of its success [offering]”

The short seller’s challenge to the group has caused turmoil across the Indian business community. The company has a wide range of interests including oil and gas, ports, airports and mining.

One of India’s largest private infrastructure groups, Gautam Adani was the third richest person in the world before the sale.

Adani’s counterarguments are based on “not one” of the 88 questions Hindenburg raises, “independent or journalistic fact-finding. They merely selectively regurgitate public information or color rumors as facts.” It’s just a rhetorical allusion.”

Many questions were dismissed as “falsification”, “unsubstantiated claims” or “misleading claims”, but some received longer answers, including scanned documents, tables and quotes.

The group dismissed a question about its debt-fueled growth model and said, “Adani portfolio companies’ leverage ratios remain healthy and in line with industry benchmarks for their respective sectors.”

The company has previously said it was considering a lawsuit against Hindenburg, which has targeted companies including electric car company Nikola and social media site Twitter.

Hindenburg said last week it would “welcome” legal action. “If Adani is serious, we should sue him in the United States, where we do business,” the short seller said. “I have a long list of documents that I request in the legal discovery process.”

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