Adani Group hits back with detailed responses to Hindenburg's unsubstantiated accusations


New Delhi, Jan 30 (IANS): On Sunday, Adani Group responded to unsubstantiated allegations and misleading narrative peddled by Hindenburg Research at length in an over 400-page response backed by relevant documents.

Adani Group's response also raises the questions against the ulterior motives and modus operandi of Hindenburg that has conveniently ignored the Indian judiciary and regulatory framework.

The detailed response from Adani Group covered its governance standards, credentials, creditworthiness, best practices, transparent conduct, financial and operational performance and excellence.

The Hindenburg report has been made with a clear intent to profiteer at the cost of our shareholders and public investors. Its report is neither "independent" nor "objective". It is a manipulative document that is rife with conflict of interest and intended only for creating a false market in securities to book wrongful gain, which clearly constitutes securities fraud under Indian law.

Of the 88 questions posed by Hindenburg, it is pertinent to note that 68 refers to the matters that have already been duly disclosed by Adani Group companies in their respective annual reports, offering memorandums, financial statements and stock exchange disclosures from time to time. Sixteen out of 20 questions are pertaining to public shareholders and their sources of funds, while the balance four are simply baseless allegations.

Needless to say that Hindenburg has created these questions to divert the attention of its target audience while managing its short trades to benefit at the cost of investors. The report claims to have undertaken a "2-year investigation" and "uncover evidence", but comprises nothing other than selective and incomplete extracts of disclosed information which has been in the public domain for years.

"We take serious objection to Hindenburg that chose to mislead the investors, watchdogs and policy makers at a time when Adani Group has launched country's largest FPO. Adani Group is deeply committed to its stakeholders, and it is thankful to them for standing with us over the past 30 years. Shockingly, Hindenburg Research's attack on the trust of Adani Group's stakeholders undermines its commitment for the 'Growth with Goodness'," Adani Group said.

Hindenburg Research has come up with a document covering selective and twisted extracts of already disclosed information to raise questions in the minds of Indian and global investors to mislead them about Indian growth story. It is an attack on the trust of Adani Group's stakeholders undermines its commitment for the 'Growth with Goodness'.

Adani Portfolio companies have successfully and repeatedly executed an industry beating expansion plan over the past decade. While doing so, the companies have consistently de-levered with portfolio net debt to EBITDA ratio coming down from 7.6x to 3.2x, EBITDA has grown 22 per cent CAGR in the last 9 years and debt has only grown by 11 per cent CAGR during the same period.

Equity Injection in the Adani Portfolio Adani Portfolio has raised $16 billion equity under a systematic capital management plan for all the Portfolio companies over the last 3 years as a combination of primary, secondary and committed equity from marquee investors like TotalEnergies, IHC, QIA, Warburg Pincus etc.

The portfolio has developed deep bank relationships with institutions such as JP Morgan, Bank of America Merrill Lynch, Citi, CreditSuisse, UBS, BNP Paribas, Deutsche Bank, Barclays, Standard Chartered, MUFG, DBS and Emirates NBD among others. This has strengthened access to diverse funding sources and structures.

Adani Portfolio companies have demonstrated successful syndication of the banking transactions, resulting in de-risking of the banks in volatile markets. Case in point being Holcim's Indian cement business acquisition with international banks, and Navi Mumbai Airport and Kutch Copper refinery with domestic banks Adani Group companies also have a very strong audit process in order to prevent any deviations from the regulatory obligations and highest legal standards.

The Audit Committee of each of the listed verticals is composed of 100 per cent of Independent Directors and chaired by Independent Director.

The Statutory Auditors are appointed only upon recommendation by the Audit Committee to the Board of Directors. Adani Portfolio company's follow a stated policy of having global big 6 or regional leaders as Statutory Auditors.

Hindenburg has deliberately and repeatedly trivialised the change of CFOs to twist this into a narrative.

The fact is that many of the CFOs are still part of the organisation in other capacities to take on larger responsibilities as part of our growth stories.

Others have left post retirement or to pursue their own entrepreneurial endeavours and continue to work in our association.

None of the resignations have ever been made pursuant to any alleged concerns and Hindenburg's baseless narrative.

 

  

Top Stories

Comment on this article

  • Harish Hegde, Mangalore/Saudi

    Mon, Jan 30 2023

    Hey Jaanta don't you think you too is a cheat by supporting the cheats??? Well i doubt you have any money in the bank or else you would have talked in favor of cheat, but i do have in SBI plus I have LIC bonds, Huff what will happen to us if it is true... Maybe you are one of those jobless person funded by the BJP that is why you have no worries?? IT cell specialist.

    DisAgree [1] Agree [2] Reply Report Abuse

  • Gangaram, Moodbidri

    Mon, Jan 30 2023

    If Hindenburg report is wrong then why until now no legal notice to them???

    DisAgree [1] Agree [9] Reply Report Abuse

  • Rajesh, Udupi

    Mon, Jan 30 2023

    Jokers who promoted failed Pfizer vaccine are the same who are abusing Adani. Same frauds are promoting a vulgar movie too.... LOL

    DisAgree [13] Agree [1] Reply Report Abuse

  • Harish Hegde, Mangalore/Saudi

    Mon, Jan 30 2023

    Rajesh don't you think you too is a cheat by supporting the cheats??? Well i doubt you have any money in the bank or else you would have talked in favor of cheat, but i do have in SBI plus I have LIC bonds, Huff what will happen to us if it is true... Maybe you are one of those jobless person funded by the BJP that is why you have no worries?? IT cell specialist.

    DisAgree [1] Agree [3] Reply Report Abuse

  • Observer, Mangalore

    Mon, Jan 30 2023

    The future of Adani is uncertain from now onwards.... In the long run there will be two options in front of him; 1) To become fugitive 2) To commit suicide

    DisAgree [1] Agree [4] Reply Report Abuse

  • Haneef, Mangalore

    Mon, Jan 30 2023

    All mainstream Indian media, SEBI mum on frauds . Bubble busted now can’t hold for long. Drainage is out stinking everywhere , still public sector banks run by tax payers money trying to protect him.

    DisAgree [6] Agree [19] Reply Report Abuse

  • j.anata, Mangaluru / Bengaluru

    Mon, Jan 30 2023

    Good retort by Adani. Clearly this report is done with vested interest to derail India's rising economy and to hurt India's wealth.

    DisAgree [29] Agree [5] Reply Report Abuse

  • prakash, Manipal

    Mon, Jan 30 2023

    LIC,SBI to Adani, Adani to bajapa... Writing on the wall is clear... Vinod Adani is the kingpin who managed shell companies to temporarily park moneys for stock manipulations... With less than 10% floating stock it is Harshad Mehta 2.0.... Everyone knows everything but all media are bought or suppressed in India... Truth can never be concealed... Very soon innocent blood and cries of Gujarat victims will be vindicated too...

    DisAgree [5] Agree [21] Reply Report Abuse

  • Jossey Saldanha, Raheja Waterfront

    Mon, Jan 30 2023

    The biggest looser is SBI ...

    DisAgree [5] Agree [16] Reply Report Abuse


Leave a Comment

Title: Adani Group hits back with detailed responses to Hindenburg's unsubstantiated accusations



You have 2000 characters left.

Disclaimer:

Please write your correct name and email address. Kindly do not post any personal, abusive, defamatory, infringing, obscene, indecent, discriminatory or unlawful or similar comments. Daijiworld.com will not be responsible for any defamatory message posted under this article.

Please note that sending false messages to insult, defame, intimidate, mislead or deceive people or to intentionally cause public disorder is punishable under law. It is obligatory on Daijiworld to provide the IP address and other details of senders of such comments, to the authority concerned upon request.

Hence, sending offensive comments using daijiworld will be purely at your own risk, and in no way will Daijiworld.com be held responsible.