President and Founder of Adani Group, Gautam Adani, at News18 Rising India Summit on February 25, 2019, in New Delhi, India. Since becoming a billionaire in 2008, Adani is now one of the richest people in the world with a fortune of $113 billion, according to the Bloomberg Billionaires Index.
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Shares of Adani Group companies continued to fall sharply in the second consecutive session in India, after the company sold short. Hindenburg announces its short position in group companies earlier this week.
In a lengthy report published earlier this week, Hindenburg detailed numerous allegations against the group’s companies, saying the group had “participated in a scheme of securities manipulation and fraud” blatant accounting for decades.”
Adani dismissed the claims in two separate statements, describing the short seller’s claims as “a deliberate and reckless attempt by a foreign entity to mislead the investor community and the public.” , according to a press release.
“We are evaluating the relevant provisions under US and Indian law to take corrective and punitive measures against Hidenburg Research,” said Jatin Jalundhwala, head of legal at Adani Group.
Mumbai-listed shares of Adani Enterprises down more than 9% in India’s Friday trading session. Transmission Adani down 19.47%, Adani xanh Green Energy down 19.89% and adani’s strength lose 5%. Port of AdaniShare prices also fell 13.8%.
The moves follow Wednesday’s losses after the Hindenburg report was first published. The Indian stock market was closed on Thursday.
The short-selling company doubled down on its initial stance following Adani’s reply, stressing that the group has not yet responded to any questions raised, adding that there are any lawsuits against Hindenburg would be “useless”.
“If Adani is really serious, they should also file a lawsuit in the United States, where we operate. We have a long list of documents that we will require in a legal discovery process.” , it said.
“We fully support our report and believe that any legal action against us will be futile,” it said.
Billionaire investor and CEO of Pershing Square Capital Management, Bill Ackman, voiced his support for the short-selling company in a tweet posted shortly before the Indian markets opened.
“I found the Hindenburg report to be very reliable and extremely well-researched,” he wrote, adding that the Adani Group’s response “makes a lot of sense.”
“Caveat emptor,” he added.
$2.5 billion worth of stock offerings
The latest exchange between the group of Asia’s richest man Gautam Adani and the short-selling firm comes as Adani Enterprises begins bidding for retail investors for a secondary share offering worth Rs 200 billion. ($2.45 billion) on Friday.
The company last week set a floor price for the offering of Rs 3,112 per share, with a ceiling price of Rs 3,276 per share, according to a report. submit.
Reuters report that anchor investors, institutions allocated shares at a fixed price prior to the public offering, had bid on shares worth Rs 90 billion and that Malaysia’s Maybank was allocated more than 34% shares for institutional investors, while Abu Dhabi Investment Authority increased by 2.56%.
Since becoming a billionaire in 2008, Adani is now one of the richest man in the worldwith a fortune of $113 billion, according to Bloomberg Billionaire Index. His net worth has fallen by about $7 billion this year, the index shows.
In August last year, the company was looking for a hostile takeover of Indian media group NDTV, in a filing that said the move was “made without any consent” from the founders.
