[ad_1]
The Adani Group on Thursday said it’s planning to sue Hindenburg Research which came out with a “maliciously mischievous” report alleging “brazen stock manipulation and accounting fraud scheme” over the course of decades by the group.
“We are evaluating the relevant provisions under US and Indian laws for remedial and punitive action against Hindenburg Research,” Jatin Jalundhwala, Group Head – Legal, Adani, said in a statement.
“The maliciously mischievous, unresearched report published by Hindenburg Research on January 24, 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,” Adani said.
Responding to the group’s legal threat, the US firm said it stands by its report and believes that any legal action taken against it would be ‘meritless’.
“If Adani is serious, it should also file suit in the US where we operate. We have a long list of documents we would demand in a legal discovery process,” Hindenburg Research said on Twitter.
“At the conclusion of our report, we asked 88 straight forward questions that we believe give the company a chance to be transparent. Thus far, Adani has answered none of these questions,” it said.
“Instead, as expected, Adani has resorted to bluster and threats. In a statement to media today, Adani referred to our 106-page, 32,000-word report, with over 720 citations and prepared over the course of 2 years, as ‘unresearched’,” Hindenburg Research added.
Meanwhile, Adani Enterprises’ Rs 20,000 crore public issue is slated to open for subscription on Friday.
On Wednesday, shares of Adani group companies came under heavy selling pressure on the stock exchanges after the Hindenburg Research report came out.
Even as nine Adani group shares fell by up to 8 per cent and lost an aggregate of over Rs 80,000 crore in market capitalisation, the benchmark Sensex closed 1.27 per cent or 774 points down at 60,205.06 and the NSE Nifty Index fell 226 points at 17,891.95 as the all-round selling by foreign and local investors dampened the sentiment.
“Clearly, the report and its unsubstantiated contents were designed to have a deleterious effect on the share values of Adani group companies as Hindenburg Research, by their own admission, is positioned to benefit from a slide in Adani shares,” Adani statement said.
“We hold short positions in Adani Group Companies through US-traded bonds and non-Indian-traded derivatives, along with other non-Indian-traded reference securities,” Hindenburg had said in the report.
“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, and sabotage the FPO from Adani Enterprises,” Adani said.
Founded by Nate Anderson, US-based Hindenburg Research specialises in forensic financial research. “Our experience in the investment management industry spans decades, with a historical focus on equity, credit, and derivatives analysis,” the firm’s website says.
[ad_2]
Source link