Adani Group said that Hindenburg’s report selectively used false information to claim that the conglomerate was involved in fraudulent activities
After a report from Hindenburg Research resulted in massive fall of Adani companies’ shares on Wednesday, Adani Group said that the report from the American short-seller is a mala fide attempt at sabotaging Adani Enterprises’ FPO that is scheduled to open on January 27.
Adani Group said in a statement that Hindenburg’s report selectively used false information to claim that the conglomerate was involved in fraudulent activities. The group also clarified that Hindenburg Research did not make any attempts to contact them before publishing the report.
The Hindenburg report, that was apparently published after two years of investigation, claimed that Adani Group of companies was “engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades”.
In response to Hindenburg’s allegations, Adani Group said that they have always been in compliance with all laws and that they maintain the highest standards of corporate governance.
After the report went public, companies affiliated to the Gautam Adani-led group took a severe beating on bourses, with several stocks being dragged as far as 10 per cent. Adani companies have so far lost market capitalisation of over Rs 46,000 crore.
Adani Enterprises’ Rs 20,000 FPO is set to open on January 27 and it remains to be seen whether the Hindenburg report will have an impact on the share sale. The FPO will remain open for subscribers till 31 January.