scorecardresearchHindenburg tells Adani Group: “Fraud cannot be obfuscated by nationalism”;

Hindenburg tells Adani Group: “Fraud cannot be obfuscated by nationalism”; All you need to know

Updated: 30 Jan 2023, 11:08 AM IST
TL;DR.

Hindenburg has claimed that Adani Group's response to its allegations was left completely unaddressed and the group rather tried to divert the focus from substantive issues.

Hindenburg Research jolted the market with its research report on January 24.

Hindenburg Research jolted the market with its research report on January 24.

The Hindenburg-Adani saga looks far from over as the Adani Group's 413-page response to Hindenburg has attracted a sharp rebuttal from the research firm - "fraud cannot be obfuscated by nationalism."

The research firm has claimed that Adani Group's response to its allegations was left completely unaddressed and the group rather tried to divert the focus from substantive issues.

On January 29, Hindenburg Research said that its report asked 88 specific questions of the Adani Group. Adani failed to specifically answer 62 of them. Instead, it mainly grouped questions together in categories and provided generalised deflections.

"We note that the core allegations of our report – focused on numerous suspect transactions with offshore entities – were left completely unaddressed," said Hindenburg.

Hindenburg Research said that Adani Group "tried to lead the focus away from substantive issues and instead stoked a nationalist narrative, claiming our report amounted to a calculated attack on India.

Hindenburg said it believes India is a vibrant democracy and an emerging superpower with an exciting future. But it also added that India’s future is being held back by the Adani Group.

"We also believe India’s future is being held back by the Adani Group, which has draped itself in the Indian flag while systematically looting the nation," said Hindenburg.

"Adani’s ‘413 page’ response only included about 30 pages focused on issues related to our report. The remainder of the response consisted of 330 pages of court records, along with 53 pages of high-level financials, general information, and details on irrelevant corporate initiatives, such as how it encourages female entrepreneurship and the production of safe vegetables," Hindenburg said.

Hindenburg jolted the market after it shared its research report on January 24 which claimed Adani Group had indulged in stock manipulation and an accounting fraud scheme over the course of decades.

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First Published: 30 Jan 2023, 11:08 AM IST