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Indian conglomerate Adani Group said on Thursday that the US-based activist investment firm revealed a short position in the group’s companies and accused the firm’s founders of potential legal action against Hindenburg Research on Thursday. said it was considering. Engage in stock manipulation or fraud.
File photo of Adani Group Chairman Gautam Adani speaking at the 9th Vibrant Launch Ceremony … [+]
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In an emailed statement, Adani Group Legal Director Jatin Jarundwala issued a statement, stating that the company is seeking “corrective and disciplinary action against Hindenburg Research” under both U.S. and Indian law under “relevant provisions.” are being evaluated,” he said.
In a statement, the Adani Group again denounced the Hindenburg Research report as a “malicious hoax”. [and]
uninvestigated,” adding that it had a negative impact on the company, its shareholders and investors.
The statement condemned the Hinderberg report for causing volatility in India’s stock market, adding that it “caused unwanted distress to the Indian people.”
The statement classified Hindenburg as a “foreign entity” and accused the investment firm of trying to mislead the public and sabotage a follow-on public offering of its flagship entity, Adani Enterprises, scheduled for Friday. ing.
All seven listed companies in the group, which bears the Adani name and owns recent acquisitions NDTV, Ambuja Cement and ACC, closed at a loss on Wednesday.
Indian stock markets were also closed on Thursday as the country celebrated its 74th Republic Day.
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Adani Group founder Gautam Adani now has a net worth of $119.1 billion, down by more than $6.5 billion in the last 24 hours, according to our estimates. On Wednesday, Adani handed over the No. 3 spot on the world’s richest list to his Amazon founder Jeff Bezos.
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$12 billion. This is the cumulative market value lost by Adani Group listed companies in Wednesday’s stock market crash.
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Hindenburg Research, in a report released Tuesday evening, revealed short positions in publicly traded companies by the Adani Group, accusing the company of being involved in “decades of brazen stock manipulation and accounting fraud schemes.” condemned. The report made a series of scathing accusations, calling it “manipulating stocks” and “money laundering” offshore shell companies through the private sector of the Adani Group in order to maintain the appearance of financial soundness and solvency. I used it for “, and put it on the books of the listed company. The Adani Group vehemently denied the accusations, which it labeled a “malicious combination of selective misinformation and banal, unsubstantiated and discredited allegations tested and dismissed by India’s Supreme Court.” Did.
References
Adani Group shares drop after Hindenburg claims ‘greatest fraud in corporate history’ (Forbes)
Hindenburg vs Adani: Short sellers take on Asia’s richest man (Bloomberg)
