After Adani Group threatened legal action against US investor Hindenburg Research over the report that alleged “brazen” market manipulation and accounting fraud, Hindenburg said that it stands by its report. “Regarding the company’s threats of legal action, to be clear, we would welcome it. We fully stand by our report and believe any legal action taken against us would be meritless,” Hindenburg Research said on Twitter. In a post responding to Adani Group’s statement, the investment research firm said that in the 36 hours of its releasing of the report, Adani hasn’t addressed any substantive issue raised.
“At the conclusion of our report, we asked 88 straightforward questions that we believe give the company a chance to be transparent. Thus far, Adani has answered none of these questions,” the tweet maintained. Adding that the conglomerate referred to its 106-page, 32,000-word report, with over 720 citations and prepared over the course of 2 years, as unresearched, Hindenburg said, “If Adani is serious, it should also file suit in the US where we operate. We have a long list of documents we would demand in a legal discovery process.”
Earlier, Adani Group’s legal head Jatin Jalundhwala had, in a statement, said, “We are evaluating the relevant provisions under US and Indian laws for remedial and punitive action against Hindenburg Research.” On Wednesday, Hindenburg alleged of corporate malpractice on the part of Adani Group, based on its two-year long investigation into the conglomerate. Following the revelation, shares in Adani Group companies slumped by up to 8.1 per cent.
Share prices of Gautam Adani’s flagship firm Adani Enterprises Ltd and Adani Ports and Special Economic Zone Ltd dropped as much as 3.7 per cent and 7.3 per cent respectively on Wednesday. Adani’s recent acquisitions, ACC Ltd and Ambuja Cements Ltd plunged by as much as 7.2 per cent and 9.7 per cent. The report surfaced just as a Rs 20,000 crore follow-on share sale of Adani Enterprises opened for institutional investors.