Adani Group published a 413-page report on Sunday, January 29, refuting allegations of fraud by short-selling agency Hindenburg Research. About 65 of the 88 issues raised by Hindenburg Research have been resolved in Adani’s public disclosure, Adani Group said in the report, and the actions of the short sellers are “nothing short of a well-orchestrated securities Fraud”.
On January 25, Hindenburg Research released a 100-page report claiming that its two-year investigation had found “brazen stock manipulation and accounting fraud” at Adani. It also noted that the group was saddled with “substantial debt”.
As the stock prices of the main companies under the Adani Group have continued to rise in the past two years, the 60-year-old Adani’s personal assets exceeded US$120 billion in early January this year, not only becoming the richest man in Asia, but also ranked third on the global rich list, even More than Bill Gates and Buffett.
However, after the release of the short-selling report, the share price of Adani Group plummeted in the next two trading days, and Adani’s worth also shrank by more than 48 billion U.S. dollars last week. It is worth mentioning that the release of this short-selling report happened to be a critical period for the Adani Group to conduct a 200 billion rupiah ($2.4 billion) stock offering, which is unavoidably worrying. This report will affect the timing of new share issuance market popularity.
Fight back! Adani Group published a 413-page report refuting short sellers. Click on the video to see it!