Following Hindenburg’s allegations, the Adani Group witnessed a massive fall in the market and its listed companies’ share prices also declined.
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Gautam Adani, the chairman of the Adani Group, reaffirmed during the company’s 31st Annual General Meeting (AGM) that the Hindenburg report, released earlier this year, consisted of misinformation and discredited allegations aimed at tarnishing the company’s reputation. The US-based short-seller Hindenburg Research published a report in January, accusing the group of stock manipulation and accounting fraud, allegations that Adani vehemently denied. Notably, the report was published just prior to the launch of Adani Enterprises Ltd’s Rs 20,000 crore follow-on public offer (FPO).
In a video message, Gautam Adani stated that the Hindenburg Research report was a deliberate combination of “targeted misinformation and discredited allegations,” most of which pertained to the period from 2004 to 2015 and had been resolved by the relevant authorities at that time. Adani further emphasized that the report was a malicious attempt to damage the company’s reputation and generate profits through a short-term reduction in stock prices.
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The release of the Hindenburg report had a significant impact on the Adani Group, resulting in a sharp decline in the market value and share prices of its listed companies. Furthermore, the report led to the cancellation of the fully subscribed Rs 20,000 crore FPO for Adani Enterprises Ltd.
Adani acknowledged that, despite issuing a comprehensive rebuttal, various vested interests and entities sought to exploit the claims made by the short seller. These entities actively propagated false narratives across different news and social media platforms.
During his address, Gautam Adani expressed gratitude to everyone who contributed to the company’s success and highlighted that the true ambitions of the Adani Group are yet to be fully realized. He reassured stakeholders that the group remains resilient, focused on long-term goals, and committed to maintaining its strong market position.
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Following the release of the Hindenburg report, the Supreme Court, in March, established a six-member expert committee to investigate whether there were regulatory failures in addressing the alleged contravention of securities market laws by the Adani Group or other companies. The court also directed the Securities and Exchange Board of India (SEBI) to investigate potential violations of minimum public shareholding norms in public limited companies.
