Photo: Bloomberg
American short seller Hindenburg Research’s report on the Adani Group in January was "targeted misformation" aimed to damage its reputation and misused by "vested interests", Gautam Adani, chairman of the Indian business conglomerate, has said.
Adani, in a letter to shareholders of group flagship Adani Enterprises, said Hindenburg published the report before India’s Republic Day and just as the company was planning follow-on public offering (FPO) that would have been the largest in India's market history.
"The report was a combination of targeted misinformation and outdated, discredited allegations aimed at damaging our reputation and generating profits through a deliberate drive-down of our stock prices," he said.
Despite a fully subscribed FPO, the group decided to return the money to investors and protect their interests.
"The short-selling incident resulted in several adverse consequences that we had to confront. Even though we promptly issued a comprehensive rebuttal, various vested interests tried to opportunistically exploit the claims made by the short seller. These entities engaged and encouraged false narratives across news and social platforms," said Adani.
India’s Supreme Court has set up an expert committee comprising individuals known for their independence and integrity to look into Hindenburg’s allegations. The committee’s report, made public in May 2023, said it had not found any regulatory failure.
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