Adani vs Hindenburg Research, What happened so far?
NEW DELHI: Adani Group stated on Monday that its expansion plans are intact, business plans are fully funded, and it is confident in delivering returns to shareholders despite rumors of reduced growth targets and capex.
SEBI Probing Allegations
On Monday, market regulator SEBI informed the Supreme Court that it was looking into the claims made by Hindenburg Research against the Adani Group of companies.
What was said by Hindenburg Research?
The seven publicly traded companies in the Adani group, according to Hindenburg Research, have an 85% downside on a fundamental basis because of their exorbitant prices.
According to the research, family members of Gautam Adani, the founder, and chairman of the Adani Group, hold 8 of the group’s 22 significant positions.
Answer from the Adani Group:
The Adani group referred to the US short seller as the “Madoffs of Manhattan” in a 413-page reply that was submitted late on Sunday night.
The Adani group referred to the charges as “unsubstantiated speculations” and said the article was unfounded.
“All transactions entered into by us with entities who qualify as ‘related parties’ under Indian laws and accounting standards have been duly disclosed by us,”: In a 413-page rebuttal released late on Sunday, Adani made a statement.
Hindenburg’s response to this:
The chief financial officers (CFOs) of the listed Adani companies have changed frequently, according to the short-seller, and the group’s auditors are not well-known.
Adani Enterprises has employed five CFOs over the course of eight years, according to the report, which cites this as “a critical red signal indicating potential accounting irregularities.”
Adani response:
The Adani group claimed that several of the CFOs mentioned in the Hindenburg report was still employed by the company but had taken on different responsibilities.
After Hindenburg Research claimed it stood by its conclusions of alleged share price manipulation and accounting fraud by the conglomerate, Adani Group stocks dropped 5–20%, wiping approximately 3.19 trillion in investor equity.
