Adani Group, in its 413-page report, has also responded to all 88 questions raised by Hindenburg
In a 413-page response to the Hindenburg Research report on the Adani business interests, the Adani Group has attacked Hindenburg as “an unethical short seller”.
The Adani report states that by “holding short positions” in Adani stocks, which simply put it is betting on the stock falling. Hindenburg exposed its hand as it made huge money with the fall of Adani stocks immediately following the publication of the report on January 24. In the summary of the long response by Adani Group, it said the report was “nothing but a lie”.
“The document is a malicious combination of selective misinformation and concealed facts relating to baseless and discredited allegations to drive an ulterior motive,” the Adani Group’s response said.
Adani Group, in its 413-page report, has also responded to all 88 questions raised by Hindenburg.
It went on to say the report by the US-based firm was intended only to create a “false market in securities” to enable Hindenburg, an admitted short seller, to book massive financial gain through “wrongful means at the cost of countless investors”.
Adani Group on Sunday said the recent report by Hindenburg Research was not an attack on any specific company but a “calculated attack” on India, its growth story, and ambitions.
“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 Adani Group said in a 413-page response. In its response to the Hindenburg Research, the Adani Group has attacked Hindenburg as “an unethical short seller”. It added the report was “nothing but a lie”.
A short seller in the securities market books gain from the subsequent reduction in prices of shares.
The Adani Group states that by “holding short positions” in Adani stocks, it is betting on the stock falling.
Hindenburg exposed its hand as it made huge money with the fall of Adani stocks immediately following the publication of the report on January 24.
Earlier on Thursday, Adani Group said it was mulling legal options in the US and India against Hindenburg Research after its report accused firms owned by Gautam Adani of market manipulation and accounting fraud.
Jatin Jalundhwala, Group Head – Legal, Adani Group, in a statement earlier this week, said, “We (the Group) are evaluating the relevant provisions under US and Indian laws for remedial and punitive action against Hindenburg Research.”
Reportedly, the research firm, in its report on Tuesday, raised concerns about shares of Adani group companies having a possibility of declining from their current levels, owing to high valuations.
The timing of the report by Hindenburg Research, Adani Group had said is “clearly betrays a brazen, mala fide intention to undermine” the Adani Group’s reputation with the “principal objective of damaging” the group’s Follow-on Public Offering from Adani Enterprises, the biggest FPO ever in India.
Meanwhile, the domestic markets were volatile in the beginning and settled with gains on Thursday. The morning session of the day was somewhat volatile while stocks were steady in the afternoon. The strong market sentiments in the US and Europe also influenced markets in Asia, namely China and Japan.
However, in the domestic market, Adani Group firms’ losses ballooned to more than USD 100 billion after the Chairman of the group Gautam Adani declared that the flagship firm was taking a U-turn with its follow-on public offer. BSE key indices Sensex surged 224 points to 59,932.24 while NSE Nifty50 lost 5 points to 17,610.40 on Thursday.
On Thursday, shares of Adani Group flagship firm, Adani Enterprises, were down 26 per cent to Rs 1,565.30 apiece. In a span of five sessions, it has lost more than Rs 1,719.65 or declined over 52.35 per cent.
Adani Ports and SEZ lost Rs 35.65 or dropped 7.20 per cent to Rs 459.50 on Thursday morning. The firm’s shares had lost more than Rs 224.10 or 32.78 per cent in a period of five days. Adani Green’s shares dropped 10 per cent to Rs 1,039 apiece, while it lost Rs 588 36.15 per cent in just five days.
FMCG firm Adani Wilmar dropped 5 per cent to Rs 421 apiece on Thursday morning while it lost Rs 95 or dropped more than 18 per cent in a span of five days.
Adani Transmission shares went down 10 per cent flat to Rs 1,551.15 apiece in the morning trade on Thursday. The firm had lost Rs 575 or dropped 27 per cent in just 5 days.
On Thursday, Adani Group Chairman Gautam Adani said it would not be “morally correct” to go ahead with the Rs 20,000-crore share in the current market condition.