TNI Bureau: A New York-based investor research firm accused industrialist Gautam Adani’s companies Adani Group of “brazen stock manipulation and accounting fraud scheme.
According to reports, investor research firm Hindenburg Research, which specialises in short selling, accused the Adani Group of “brazen stock manipulation and accounting fraud scheme over the course of decades”.
Shockingly, the shares of Adani Group companies lost over Rs 80,000 crore in market capitalisation Wednesday aftermath accusation of Hindenburg Research.
Hindenburg Research disclosed in the report that it has “taken a short position in Adani Group Companies through U.S.-traded bonds and non-Indian-traded derivative instruments”.
Hindenburg Research’s report has been published just two days before the group’s flagship Adani Enterprises follow-on public offer of Rs 20,000 crore is scheduled to open for subscription tomorrow.
Meanwhile, the Adani Group claimed that Hindenburg Research’s report is malafide. “The timing of the report’s publication clearly betrays a brazen, mala fide intention to undermine the Adani Group’s reputation with the principal objective of damaging the upcoming FPO from Adani Enterprises, the biggest FPO ever in India. The investor community has always reposed faith in the Adani Group on the basis of detailed analysis and reports prepared by financial experts and leading national and international credit rating agencies,” it said.
Reacting over the report of the New York-based firm, Adani Group CFO Jugeshinder Singh said, “We are shocked that Hindenburg Research has published a report on January 24, 2023, without making any attempt to contact us or verify the factual matrix. The report is a malicious combination of selective misinformation and stale, baseless and discredited allegations that have been tested and rejected by India’s highest courts.”