International Finance: Adani tries to calm investors with 413-page Hindenburg rebuttal

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Gautam Adani published a 413-page rebuttal to a short seller’s allegations of widespread corporate malfeasance, seeking to calm investors in the midst of a $2.5-billion share sale and stem a rout that wiped out more than $50-billion of his group’s ...

In a statement on Sunday, the Adani Group said some 65 of the 88 questions raised by Hindenburg Research have already been addressed in public disclosures and called the US firm’s conduct “nothing short of a calculated securities fraud under applicable law”. It also repeated a threat of legal action.

“Just because things are disclosed and known does not make them right,” Freitas said. “How does a group that big explain no analysts coverage and no mutual fund holdings? For me, the biggest issue is the shareholding pattern that is helping keep valuations at stratospheric levels. There will be additional scrutiny given how long this saga has gone on, but I think the impact on the overall market will be small.”Adani Enterprises, which is scheduled to close on Tuesday.

On the roles of Adani’s older brother, Vinod, the group says he “does not hold any managerial position in any Adani listed entities” or units and no role in their day-to-day affairs; not in a position to comment on his business dealings. On the choice of Monarch Networth Capital to run share sales, Adani says the firm was selected for its credentials and ability, and the alluded one-month suspension more than a decade ago has no relevance.

 

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