Adani Group is considering legal action against Hindenburg after listed shares were hit hard

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Indian conglomerate Adani Group said on Thursday it was considering possible legal action against Hindenburg Research as its various listed companies were hit by a market sell-off, a day after the US-based activist investment firm disclosed short positions on the group’s companies and the The company’s founders had been accused of involvement in stock manipulation and fraud.

Important facts

In an emailed statement, Adani Group’s legal director, Jatin Jalundhwala, said the company was “assessing the relevant provisions” under both US and Indian law for “remedial and punitive actions against Hindenburg Research.”

In the statement, the Adani group again criticized the Hindenburg Research report, calling it “maliciously mischievous”. [and]

not researched,” adding that it had negatively impacted the company, its shareholders and investors.

The statement accused Hinderburg’s report of creating volatility in Indian stock markets, adding that it “has resulted in unwanted distress for Indian citizens.”

The statement referred to Hindenburg as a “foreign company” and accused the investment firm of attempting to mislead the public and sabotage the follow-up IPO of its flagship Adani Enterprises, scheduled for Friday.

All seven listed companies in the group, nicknamed Adani, and recent acquisitions NDTV, Ambuja Cement and ACC ended Wednesday in the red.

Stock markets in India remained closed on Thursday as the country celebrated its 74th Republic Day.

Forbes rating

According to our estimates, the current net worth of Adani Group founder Gautam Adani is $119.1 billion, down more than $6.5 billion in the last 24 hours. On Wednesday, Adani ceded third place on the list of the world’s richest companies to Amazon founder Jeff Bezos because his company’s stocks had fallen sharply.

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12 billion dollars. This is the cumulative market value that Adani Group’s listed companies lost in Wednesday’s stock market sell-off.

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Hindenburg Research has disclosed a short position against the Adani Group’s listed companies in a report published Tuesday night, accusing the company of engaging in “brazen stock manipulation and accounting fraud” over the decades. The report made a number of scathing allegations, including the Adani Group’s alleged use of offshore shell companies for “stock manipulation” and “money laundering” by its private companies, on the books of publicly traded companies “to maintain an appearance of financial health and solvency.” The Adani Group has vehemently denied the allegations, calling them “a malicious combination of selective misinformation and outdated, unfounded and discredited allegations that have been examined and dismissed by India’s highest courts”.

Further reading

Adani Group shares slide after Hindenburg claims ‘biggest scam in company history’ (Forbes)

Hindenburg vs. Adani: The short seller takes on Asia’s richest person (Bloomberg)

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