Adani Group vs Hindenburg Research Battle Heats Up

The Adani-Hindenburg dispute turned into a verbal brawl over the weekend, with Adani Enterprises labelling Hindenburg Research as the “Madoffs of Manhattan” in a 413-page response to the company’s initial charges. The research firm’s report is “a malicious combination of selective misinformation and concealed facts relating to baseless and discredited allegations to drive an ulterior motive,” the group claimed in the statement.

Adani’s response was quickly addressed by Hindenburg Research, which on Monday morning posted its own rebuttal, claiming that “in terms of substance, Adani’s ‘413-page’ response only included about 30 pages focused on issues related to our report.”

To be clear, we believe India is a vibrant democracy and an emerging superpower with an exciting future, the Hindenburg said in its statement. it further added that, we also think that the Adani Group, which has draped itself in the Indian flag while systematically robbing the country, is holding back India’s future.

According to Hindenburg, the remainder of the response was made up of 53 pages of high-level financial information, 330 pages of court records, and information on irrelevant corporate initiatives like how it supports female entrepreneurship and the production of safe vegetables.

In its initial report, Hindenburg disclosed that it had been accused by Adani of breaking laws governing securities and foreign exchange as well as being unethical. When it comes to Chairman Gautam Adani’s elder brother Vinod Adani, his alleged shell companies, and their alleged dealings with the Adani Group companies, the research firm claimed the Adani Group has avoided the most serious allegations it has made.

The majority of the issues raised by Hindenburg, according to the Adani response, have already been made public by the Adani companies, and the rest either concern unrelated businesses or are unfounded allegations.

Adani fails to answer 88 questions- Hindenburg!

The Adani response stated that the Hindenburg report asks, “88 questions” and that “65 of these relate to matters that have been duly disclosed by Adani Portfolio companies in their annual reports available on their websites, offering memoranda, financial statements, and stock exchange disclosures from time to time.” Of the remaining 23 questions, 18 concern public shareholders and other parties (rather than the Adani portfolio companies), and the remaining 5 are unfounded allegations based on fictitious data.

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However, the group claimed it would make an effort to respond to each of the 88 questions, something Hindenburg claimed it had not done.

According to Hindenburg, “Our report asked 88 specific questions of the Adani Group.” “Adani did not specifically address 62 of them in its response.

Adani also failed to substantively address the issues raised in other instances, the statement continued, instead merely citing its own filings and declaring the questions or pertinent matters settled. “Of the few questions it did respond to, as we detail, its answers largely confirmed our findings.”

Vinod Adani pouring money into Adani Group

Hindenburg claimed that the Adani Group, in particular, had failed to respond to questions about the report’s most serious allegation: that the Adani Group had engaged in billions of dollars in suspicious dealings with Gautam Adani’s brother Vinod Adani, involving numerous offshore shell companies. These transactions “raised serious questions about stock and accounting manipulation,” according to Hindenburg.

The report cites numerous instances where companies based in Mauritius and allegedly owned by Vinod Adani had undisclosed dealings with the Adani Group.

Hindenburg argued that, despite providing detailed proof demonstrating the existence of numerous shell companies allegedly owned by Vinod Adani, the Adani Group response simply sidestepped the familial relationship rather than denying that the transactions occurred.

“In other words, we are expected to believe that Gautam Adani has no idea why his brother Vinod lent massive sums of money to Adani entities, or where the money came from,” the report continued.


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