Industrialist Gautam Ambani today said that US-based short seller Hindenburg’s report released in January this year was a “combination of targeted misinformation and discredited allegations” by vested interests to damage the Adani Group’s reputation.
Speaking at the group’s annual general meeting (AGM), Adani said the report was released with the aim of generating a quick profit from a short-term drive down of the Adani Group stock prices.
“The majority of allegations were dated from 2004 to 2015. They were all settled by appropriate authorities at that time,” he said.
“Subsequently, despite a fully subscribed FPO, we decided to return the money to investors to protect their interest. While we promptly issued a comprehensive rebuttal, various vested interests tried to exploit the claims made by the short seller. These entities encouraged and promoted false narratives across various news and social media platforms,” he added.
Adani pointed out that the Supreme Court-appointed committee found no regulatory failure.
“The committee’s report not only observed that the mitigating measures undertaken by the company helped rebuild confidence but also cited that there were credible charges of targeted destabilisation of the Indian markets,” Adani pointed out.
The Hindenburg report published on January 24, claimed that key listed Adani companies had taken on substantial debt, putting the entire group on precarious financial footing. The report which was timed with the issue of the Adan Group’s Rs 20,000 crore FPO had triggered a 28% crash in Adani stock prices.
The Adani group had then decided to return the money to investors and take back its shares. The share prices had continued to fall after the negative publicity driven by the Hindenburg report.
However, the Adani Group had subsequently worked to win back the confidence of investors as it drastically cut its debt.
The Supreme Court panel report which gave the Adani Group a clean chit then helped the group to further revive its reputation and share prices have risen again.