Adani Hindenburg Report: The US-based short seller Hindenburg Research was a combination of targeted misinformation and discredited allegations, said Gautam Adani, Adani Group Chairman on Tuesday.

During the 31st Annual General Meeting (AGM) of the Adani Group in 2023, Gautam Adani, the Chairman, addressed stakeholders through a video message.

Adani highlighted that the timing of Hindenburg’s report coincided with the Adani Group’s plans to launch the largest Follow-on Public Offering (FPO) in India’s history.

Adani emphasized that the allegations made by Hindenburg were primarily based on past events dating from 2004 to 2015, which had already been resolved with appropriate authorities at the time. He condemned Hindenburg’s report as a deliberate and malicious attempt to tarnish the reputation of the Adani Group and manipulate stock prices for short-term profit.

Furthermore, Adani revealed that despite the FPO being fully subscribed, the Adani Group decided to withdraw and return the money to protect the interests of investors. While a comprehensive rebuttal was promptly issued by the Adani Group, various vested interests took advantage of the claims made by the short seller and spread false narratives across news and social media platforms.

Adani mentioned that the Hindenburg report, released on January 24, made allegations of stock manipulation and fraud against the Adani Group. Earlier, he had referred to Hindenburg as an “unethical short seller” and dismissed their report as a fabrication. Short sellers in the securities market aim to profit from subsequent decreases in share prices.

Addressing shareholders at the AGM, Adani highlighted the report by an expert committee appointed by the apex court, which helped restore confidence in the Adani Group.

He stated that the committee did not find any regulatory failures and acknowledged the mitigating measures undertaken by the Adani Group, further confirming the credibility of their disclosures. The committee also mentioned credible charges of targeted destabilization of Indian markets.

Adani assured investors that the Adani Group’s governance and disclosure standards are of high quality, as confirmed by the expert committee.

While awaiting the report from SEBI (Securities and Exchange Board of India), Adani expressed confidence in their continued commitment to improving governance and disclosure standards, citing their exemplary track record.