Indian conglomerate Adani Group said on Thursday it is considering legal action against Hindenburg Research as its publicly traded companies were hit by a market sell-off on Wednesday after the US-based activist investment firm rigged manipulation. and stock fraud.
In an emailed statement, Adani Group’s chief legal officer, Jatin Jalundhwala, said the company was “assessing the relevant provisions” under US and Indian law for “corrective and punitive measures against Hindenburg Research.”
In the statement, the Adani Group again criticized the Hindenburg Research report, calling it “maliciously mischievous.” [and]
without investigating” and added that it had negatively affected the company, its shareholders and investors.
The statement blamed Hindenburg’s report for creating volatility in Indian stock markets, claiming that it “has caused unwanted distress for Indian citizens.”
Labeling Hindenburg a “foreign entity,” the statement accuses the investment firm of trying to mislead the public and sabotage the follow-up public offering of his flagship firm Adani Enterprises, scheduled for Friday.
The group’s seven listed companies that carry the Adani moniker and recent acquisitions NDTV, Ambuja Cement and ACC all ended in the red on Wednesday.
India’s stock markets remained closed on Thursday as the country celebrated its 74th Republic Day.
According to our estimates, the net worth of Adani Group founder Gautam Adani is $119.1 billion as of Thursday, a decrease of more than $6.5 billion in the last 24 hours. On Wednesday, Adani ceded the number three spot on the list of the world’s richest to Amazon founder Jeff Bezos as shares of his company fell sharply.
$12 billion. That’s the cumulative market value lost by Adani Group’s publicly traded companies in Wednesday’s stock market settlement.
Hindenburg Research disclosed a short position against Adani Group’s publicly traded companies in a report published Tuesday night, while accusing the company of engaging in “blatant stock manipulation and accounting fraud scheme along over decades.” The report made a series of scathing allegations, including the alleged use of offshore shell companies for “equity manipulation” and “money laundering” through the private companies of the Adani Group, on the books of publicly traded companies. bag “to maintain the appearance of financial health and solvency.” Adani Group has vehemently denied the allegations as “a malicious combination of targeted misinformation and outdated, unsubstantiated and discredited allegations that have been proven and rejected by India’s highest courts.”
Adani Group shares slide after Hindenburg alleges “biggest scam in corporate history” (Forbes)
Jeff Bezos overtakes billionaire Gautam Adani as world’s third-richest person after scathing short-seller report (Forbes)
Hindenburg vs Adani: The short seller taking on the richest person in Asia (Bloomberg)