‘Mala fide intention to undermine reputation, damage upcoming FPO’: Adani Group responds to Hindenburg report

Hindenburg Research in its report held short positions in Adani Group, accusing the conglomerate of improper extensive use of entities set up in offshore tax havens and expressing concern about high debt levels

The Adani Group on January 25, dismissed the Hindenburg report, which claimed that key listed companies in the group had “substantial debt”, as “a malicious combination of selective misinformation and stale, baseless and discredited allegations.”

Hindenburg Research in its report held short positions in Adani Group, accusing the conglomerate of improper extensive use of entities set up in offshore tax havens and expressing concern about high debt levels.

The report, comes days ahead of a $2.5 billion share offering by flagship firm Adani Enterprises, and sent shares in Adani group firms sliding. “We are shocked that Hindenburg Research has published a report on 24 January 2023 without making any attempt to contact us or verify the factual matrix,” Adani’s Group CFO Jugeshinder Singh said in a statement.

Stating that the allegations in the report “have been tested and rejected by India’s highest courts,” Mr. Singh claimed that the timing of the report’s publication “betrays a brazen, mala fide intention to undermine the Adani Group’s reputation.” He also accused that the principal objective of the report was to damage the “upcoming Follow-on Public Offering from Adani Enterprises, the biggest FPO ever in India.”

Hindenburg, a well known U.S. short-seller, said that seven Adani listed companies have an 85% downside on a fundamental basis due to what it called "sky-high valuations".

Hindenburg said it held its short positions through U.S.-traded bonds and non-Indian-traded derivative instruments.

Adani has repeatedly dismissed debt concerns, and Mr. Singh had previously told media on January 21 "Nobody has raised debt concerns to us. No single investor has."