On January 24, 2023, Hindenburg came out
with 106-page report alleging “brazen stock manipulation and accounting fraud
scheme” over the course of decades by the Adani group.
Adani group chairman Gautam Adani on Monday
came down on Hindenburg Research of the US, saying that the firm’s report that
made serious allegations against the group was “designed to defame us, do
maximum damage and erode our hard-earned market value”.
Without naming Hindenburg, Adani
said, “we were faced with baseless accusations made by a foreign short seller,
that questioned our decades of hard work. In the face of an unprecedented
attack on our integrity and reputation, we fought back and proved that no challenge
could weaken the foundations on which your group has been established.”
Adani
said typical short sellers target gains from financial markets. “This was
different. It was a two-sided attack – a vague criticism of our financial
standing and, at the same time, an information distortion campaign, dragging us
into a political battlefield. The attack was a calculated strike two days
before the closing of our Follow-on Public Offer,” Adani said at the annual
general meeting of Adani Enterprises.
On January 24, 2023, Hindenburg came out
with 106-page report alleging “brazen stock manipulation and accounting fraud
scheme” over the course of decades by the Adani group. Shares of Adani group
companies came under heavy selling pressure on the stock exchanges and their
market capitalization plunged steeply after the Hindenburg Research report came
out. Adani group shares recovered later.
“Despite successfully raising Rs
20,000 crore through India’s largest ever FPO, we made the extraordinary
decision to return the proceeds,” Adani said.
“In this situation, where most companies
would have gone under, our liquidity became our greatest asset. To further
augment our cash reserves, we raised an additional Rs 40,000 crore, comfortably
covering the next two years of our debt repayment,” Adani said.
“This decisive action is a
testimony to the great strength of your company. It restored market confidence
– and we safeguarded our portfolio against any volatility by pre-paying Rs
17,500 crore in margin-linked financing,” he said.
“With our record results, robust
cash positions and the lowest debt ratios in our history, our path ahead is
illuminated with the promise of even greater accomplishments.
“The possibilities before us are immense.
We are stronger than ever. And our best is yet to come,” Adani said.
Comments
Post a Comment