Adani Statement: American financial research company Hindenburg Research had alleged that the Adani group has been involved in ‘blatant stock manipulation and accounting fraud’. However, Adani Group called this allegation completely baseless. He said that this was done with nothing but mala fide intention to harm his share sale. Jatin Jalundhwala, Legal Head of Adani Group has given this information.
What has Adani Group said
Adani Group said that it was not contacted to verify the facts regarding the report and it is shocking and disturbing. The group, working in the port to energy sector, said, “The report has been prepared on nothing but selective wrong and baseless information and the purpose of which is completely malicious. On the basis of which the report has been prepared, It has also been rejected by the courts of India.
Adani Group Group CFO Jugeshinder Singh gave his response
On the report of Hindenburg Research, Adani Group’s Group CFO Jugeshinder Singh said in his response that we are surprised by the published report of Hindenburg Research because they have published the report without contacting us or verifying the correct facts. Adani Group said that this report is a malicious mix of misinformation, stale, baseless and defamatory allegations which have been tested and rejected by the Supreme Courts of India. Along with this, he said that this report has been brought with the intention of harming the FPO of Adani Enterprises. Adani Group has also raised questions regarding the timing of the report. He said that the report issued just before the FPO clearly shows that it has been brought with malicious intent, whose purpose is to discredit the reputation of Adani Group.
Hindenburg Research’s allegations are very serious – Adani Group’s shares crashed
According to the American company Hindenburg, after two years of its research, it was found that the Rs 17,800 billion ($ 218 billion) Adani Group has been involved in “blatant stock manipulation and accounting fraud” for decades. The report comes just before the opening of applications for the Rs 20,000 crore follow-on public offering (FPO) of Adani Enterprises, the flagship company of the Adani Group. The FPO of the company will open on January 27 and close on January 31.
Allegations of corruption, money laundering and tax evasion
According to the Hindenburg Research report, “Adani Group’s founder and chairman Gautam Adani’s net worth is $ 120 billion. Out of this, more than $ 100 billion has increased in the last three years. The reason for this is the rise in the shares of seven listed companies of the group. In these, there has been an average increase of 819 percent during this period. The report gives detailed information about the mask units controlled by the Adani family. These companies range from the Caribbean and Mauritius to the United Arab Emirates (UAE). It has been claimed that these units were used to carry out corruption, money laundering and tax evasion. Along with this, it was also used for misappropriating the funds of the listed companies of the group.
Hindenburg said, “The research was conducted with a number of individuals, including former senior executives of the Adani Group. Thousands of documents were reviewed and the situation was ascertained by visiting about six countries.” The company claimed to have covered up those efforts, with measures taken to cover up some masked units. The report said, “The group’s major listed companies have taken significant debt. This includes loans taken as collateral when share prices were high. This has put the financial condition of the entire group in a shaky state.” Is.”
Adani Group has been dismissing the concerns
It is worth noting that Adani Group has been repeatedly dismissing the concern regarding debt. Group chief financial officer (CFO) Jugeshinder Singh told the media on January 21, “Nobody has raised concerns about our debt. Not a single investor has said anything.” The group said, “The investor community has always reposed faith in the Adani Group, based on detailed analysis and reports by financial experts and leading national and international credit rating agencies.” He said, “Our investors are aware of things and they are not going to be swayed by one-sided and baseless reports issued by vested interests.” The group said, “The group has always been in compliance with all laws wherever it operates and has maintained high standards of corporate governance.”
Adani Group shares fell heavily yesterday
After the report, the shares of Adani Group saw a huge fall yesterday. Although later it managed to recover from the loss. Adani Enterprises was down 2.5 per cent but was down 1.5 per cent at around 2 pm after the group’s statement. Adani Port and SEZ Limited also went down by 6.23 per cent at one point of time. Later there was some improvement in it.
