Adani Group to explore legal options against Hindenburg in India and US

A report by Hindenburg detailed how Adani Group has “engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades”

A day after the U.S. short-seller Hindenburg released its research report raising serious concerns about the Adani Group’s “substantial debts”, the Ahmedabad-based conglomerate said it is evaluating the relevant provisions under the U.S. and Indian laws for remedial and punitive action against Hindenburg Research. 

In a statement on January 26, the group’s legal head Jatin Jalundhwala stated that the report was an “intentional and reckless attempt by a foreign entity” and stressed that it was meant to “sabotage the FPO (Follow-on Public Offering) from Adani Enterprises.” 

“The maliciously mischievous, unresearched report published by Hindenburg Research on 24 January 2023 has adversely affected the Adani Group, our shareholders, and investors. The volatility in Indian stock markets created by the report is of great concern and has led to unwanted anguish for Indian citizens. 

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“We are deeply disturbed by this intentional and reckless attempt by a foreign entity to mislead the investor community and the general public, undermine the goodwill and reputation of the Adani Group and its leaders,” the statement quoted Mr. Jalundhwala as saying. 

On Wednesday, shares of the Adani Group’s listed companies, including its recently acquired cement and media units, fell across the board with losses ranging from 1.5% to 8% in the wake of the report that stated the company’s “substantial debt” had put the entire Group on a “precarious financial footing.”

“Today we reveal the findings of our 2-year investigation, presenting evidence that the... Adani Group has engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades,” Hindenburg Research said in its report published on its website on January 24.