Adani Group, owned by Asia’s wealthiest individual Gautam Adani, will not be releasing a detailed response to allegations made by American short-seller Hindenburg Research until after the completion of a new share sale on January 31st, according to sources familiar with the matter. The conglomerate had previously stated that it would provide a detailed rebuttal on Friday, but that has not yet materialized.
Hindenburg Research, which published a report accusing the Adani Group of “engaging in a brazen stock manipulation and accounting fraud scheme over the course of decades” and calling out the conglomerate’s “substantial debt,” has sent shockwaves through the industry. The report was released just days before the billionaire’s flagship company, Adani Enterprises, launched India’s largest-ever primary follow-on public offering, seeking to raise $2.5 billion.
The Adani Group has reportedly prepared a response of over 100 pages and is seeking legal advice on when to release it. While the group will not be releasing its response before January 31st, it is unclear when the reply will be made public.
The group’s market value lost over $50 billion in just two sessions, costing Adani himself more than $20 billion, or about one-fifth of his total fortune, according to the Bloomberg Billionaires Index. In response to the report, the Adani Group has stated that it is exploring legal action against Hindenburg Research, calling the report “maliciously mischievous,” “bogus,” and “unresearched.”
As the investigation continues and the Adani Group prepares its response, one thing is clear: the accusations made by Hindenburg Research have caused significant financial losses and reputational damage to the conglomerate and its owner. The upcoming share sale and the release of the Adani Group’s response will likely be closely watched by investors and industry experts alike.
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