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Adani Group chairman Gautam Adani has come forth to condemn the Hindenburg report, labeling it as a concerted effort to destabilize the Adani Group and tarnish India’s governance practices. Adani’s remarks resurface over a year following the publication of the contentious report by the US-based investment research firm Hindenburg, which cast aspersions on Adani Group stocks.
Adani voiced, “Last year, January 24, we were subject to a massive attack by a US short seller. The objective was just not to destabilize us, but also to politically defame India’s governance practices. Despite the efforts to shake our foundation, we stood firm, not just safeguarding our reputation but also ensuring we remained focused on our operations.”
The saga began on January 24, 2023, when Hindenburg released a damning report alleging fraudulent transactions, accounting discrepancies, and stock market manipulation within Adani Group companies. The repercussions were severe, with Adani Group stocks plummeting and wiping out a staggering $111 billion in investor wealth. Gautam Adani, previously ranked as the world’s second-richest individual at the start of 2023, saw his position slip out of the top 20 following the report’s release.
Reflecting on the tumultuous period, Adani conveyed a message to shareholders last year, lamenting the timing of the report’s publication. “On the eve of our Republic Day, a US-based short seller published a report just as we were planning to launch the largest Follow-on Public Offering (FPO) in India’s history. The report was a combination of targeted misinformation and outdated, discredited allegations aimed at damaging our reputation and generating profits through a deliberate drive-down of our stock prices.”
The fallout from the Hindenburg report underscores the vulnerability of corporations to external scrutiny and the impact such allegations can have on investor confidence and market dynamics. Adani’s steadfast response signals a commitment to weathering adversities while upholding the integrity of the Adani Group’s operations amidst challenging circumstances.
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