Adani Group’s Chief Financial Officer Jugeshinder Singh on Wednesday said that the company was shocked by Hindenburg’s report and called it a “malicious combination of selective misinformation and stale, baseless and discredited allegations.”
Hindenburg Research report said that Adani group companies have participated in a clear stock manipulation and accounting fraud scheme over decades.
It also raised concerns over its debt and said five of seven key listed Adani companies have reported current ratios below 1. The short-seller said this suggested “a heightened short-term liquidity risk”.
With the Hindenburg report coming just days before Adani Group’s FPO on 27 January, the Adani Group said that the timing of the report’s publication clearly betrays a brazen, mala fide intention to undermine the Adani Group’s reputation.
It added that the principal objective of the report is to damage the upcoming FPO from Adani Enterprises.
Earlier in August 2022, CreditSights, part of the Fitch Group, had also raised concerns about the Adani Group’s debt and called it “overleveraged”. Though the group later rectified some calculation errors, it maintained its stance of concerns around its leverage.
The Adani Group has repeatedly dismissed debt concerns, with Singh telling media on 21 January that no investor has raised concerns about the group’s debt.
Key Adani stocks slumped on Wednesday after the report. Adani Enterprises fell 1.54 per cent, while other key group stocks, such as Adani Ports and Special Economic Zone, slumped more than 6 per cent.
On the Nifty50, Adani Ports was the top loser.
Its cement companies, ACC and Ambuja Cements, fell 7.28 per cent and 7.77 per cent, respectively.