
MUMBAI: Due to a damning report by US short seller Hindenburg Research, Adani Group is currently in the middle of a corporate-stock market storm. Late on Sunday, the company stated that 68 of the 88 questions it posed had already been addressed in annual reports of various group companies, offer documents, and stock exchange disclosures.
The group stated that the damning allegations made by Hindenburg Research are "nothing but a lie" and compared them to a "calculated attack" on India, its institutions, and its growth story.
16 of the remaining 20 questions were about public shareholders and where they get their money, and the remaining four were unfounded claims.
According to the group, "Needless to say, Hindenburg has created these questions to divert the attention of its target audience while managing its short trades to benefit at the expense of investors."
Hindenburg Research alleged various types of fraud and account manipulations by Adani Group companies over the years in its 32,000-word report on Tuesday. The group published a 413-page response to Hindenburg Research's report on Sunday.
According to the group, Hindenburg Research lacked a solid understanding of the Indian legal system, accounting practices, and fund-raising procedures in the Indian capital market at various points in the report.
For instance, it stated that Hindenburg Research had made erroneous claims that Emerging Market Investment DMCC had granted Mahan Energen a $1 billion loan.
"As part of a resolution plan duly approved by the National Company Law Tribunal (NCLT) under the Indian Bankruptcy Code," Emerging Market purchased Mahan Energen's $1 billion "unsustainable debt" from its lenders for $100. The rebuttal pointed out that "these are mala fide attempts to question bona fide transactions."
Additionally, the group stated that each member of the audit committees of each group company was an independent board member, and it detailed its governance structure.
Additionally, it stated that the claims made by Hindenburg Research that a number of CFOs of group companies have resigned and left the group over the past few years are not supported by the facts.
"As part of our growth stories, many CFOs are still employed in other capacities to take on greater responsibilities. Others have left after retirement or to start their own businesses, but they continue to work for our organization. It stated, "None of the resignations have ever been made in response to any alleged concerns or Hindenburg's baseless narrative."