"Bloated Response Ignores Key Allegations": Hindenburg On Adani Rebuttal

Hours After the Adani Group published a 413-page rebuttal to allegations of fraud by Hindenburg Research, the US-based short-seller said the statement “ignores key allegations”.

“Fraud cannot be obfuscated by nationalism or a bloated response that ignores every key allegation we raised,” Hindenburg said in its response to the Adani rebuttal.

In its statement on Sunday, the Adani Group said the conduct of the American short seller “is nothing short of a calculated securities fraud under applicable law” and added that it would pursue remedies to safeguard its stakeholders.

“This is not merely an unwarranted attack on any specific company but a calculated attack on India, the independence, integrity and quality of Indian institutions, and the growth story and ambition of India,” the statement said.

Hindenburg today said the Adani statement “tried to lead the focus away from substantive issues and instead stoked a nationalist narrative”.

“In short, the Adani Group has attempted to conflate its meteoric rise and the wealth of its Chairman, Gautam Adani, with the success of India itself,” it said.

“We disagree. To be clear, we believe India is a vibrant democracy and an emerging superpower with an exciting future,” said Hindenburg.

Hindenburg’s allegations of fraud erased $51 billion of Adani’s flagship firm’s market value. The short-seller’s report claimed that the Adani group had links with offshore tax havens and that its exposure to high debt was a concern. The report also claimed that Adani group’s stock price was inflated and had significant downside risks.

Seven listed companies belonging to the Adani conglomerate saw sharp falls in their values after the report.

The secondary share sale by Adani Enterprises opened for retail and institutional investors on Friday but saw only 1% subscriptions as the company’s stock fell 11% below the minimum offer price. The Adani Group said the sale remained on schedule at the planned issue price.

(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.)

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