Jannah Theme License is not validated, Go to the theme options page to validate the license, You need a single license for each domain name.

Adani claims the US investment firm’s fraud allegations are an “attack on India.”Adani Group

The Adani Group published a 413-page rebuttal. Fraud Claims by Hindenburg Researchlikens the US investment firm’s report to an attack on India amid mounting financial pressure on coal conglomerates.

In an attempt to assuage investor concerns and fuel nationalist frenzy, Adani attempted a US$2.5 billion equity sale in one of India’s biggest-ever fundraising campaigns.

However, most Adani Group Indian stocks plunged during Monday’s trading session as counterarguments failed to appease investors and the market crash deepened, leading to a $65 billion loss in the group’s shares.

Adani Transmission, Adani Total Gas, Adani Green Energy, Adani Power and Adani Wilmer were down 5% to 20% in trading on Monday.

Adani’s response (PDF) was announced hours before Indian markets reopened on Monday, after last week’s wild trading plunged the overall value of the conglomerate’s entity by nearly $50 billion.

“This is not simply 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,” said Adani’s response. .

“The allegations and innuendos presented as facts spread like fire, wiping out large amounts of investor wealth and benefiting Hindenburg. will make an unexpected profit.”

The Hindenburg report claimed that the Adani empire was “the biggest fraudster in corporate history” and was involved in “brazen stock manipulation and fraudulent accounting schemes.” It also accused Adani of saddled the company with debt that put the entire group on an “unstable financial base.”

US companies cited A Series of Transactions Related to Adani’s Carmichael Mine It claims that Adani may have avoided disclosing to investors that some of its Australian assets had lost value.

In a public response, Adani said the deal was compliant and stands independently.

Short-selling claims wiped billions of dollars worth out of Gautam Adani’s sprawling empire, who was the third richest person in the world. According to Forbes, Indian businessmen are now the 7th richest in the world.

The Adani corporation and its billionaire chairman are seen as close to Indian Prime Minister Narendra Modi.

The report weighs heavily on the broader Indian market, weighing on recent strong returns in emerging markets.

Hindenburg said he took a short position in Adani’s company before publishing the report. Activist funds like Hindenburg use financial instruments to profit from falling share prices of target companies.

Hindenburg, named after the 1937 airship crash, is looking for stocks that are likely to crash.

Mr. Adani’s lengthy statement includes answers to questions posed by Mr. Hindenburg, as well as supporting documents such as court decisions and excerpts from company reports.

The response also calls into question the motives, transparency and legality of the Nate Anderson-founded Activist Fund report..

Hindenburg was quick to respond to Adani’s statement, denying any wrongdoing, as trading began in Asia on Monday. He also claimed that Indian conglomerates were using patriotic ties to avoid dealing with critical issues.

The US company said fraud cannot be “obfuscated by nationalism or exaggerated responses.”

Part of the controversy centers on Hindenburg’s allegations that Adani companies were involved in extensive, undisclosed related-party transactions, but the conglomerate believes all such transactions are adequately accounted for. It has said.

Especially for investors, Adani said the amount of borrowing used by companies is in line with industry benchmarks.

Adani accused the US company of disrespecting Indian regulators and the judiciary, highlighting an old claim Adani later said was “judicially found to be false.”

This included allegations that Adani Australia Executive Director Samir Vora was a key player in a diamond trading scam designed to defraud the Indian government. Adani said the issue was closed and dismissed.

High-stakes tit-for-tat came after Hindenburg Adani dared to bring it into court Given that coal conglomerates may be subject to further scrutiny.

Green Party spokesperson for federal industry Penny Allman Payne said Hindenberg’s report should prompt Queensland’s Labor government to question whether Adani should do business in Australia. rice field.

Located in Queensland’s coal-rich Galilee Basin, the Adani Project has exported its first coal in late 2021, but has faced widespread opposition as fossil fuels contribute significantly to greenhouse gas emissions. called.

https://www.theguardian.com/business/2023/jan/30/adani-claims-us-investment-firm-hindenburg-research-allegations-attack-on-india Adani claims the US investment firm’s fraud allegations are an “attack on India.”Adani Group

Back to top button