Page 32 - The Indian EYE 021023

BUSINESS EYE FEBRUARY 10, 2023 | The Indian Eye 32

Adani Group slams Hindenburg as

“an unethical short seller” as market

losses go past $ 100 billion

Adani Group, in its 413-page report, has also responded to all 88 questions raised by Hindenburg

OUR BUREAU from Adani Enterprises, the biggest
FPO ever in India.
Ahmedabad (Gujarat)
Meanwhile, the domestic mar-
n a 413-page response to the kets were volatile in the beginning
Hindenburg Research report on and settled with gains on Thursday.
Ithe Adani business interests, the The morning session of the day was
Adani Group has attacked Hinden- somewhat volatile while stocks were
burg as “an unethical short seller”. steady in the afternoon. The strong
The Adani report states that by market sentiments in the US and Eu-
“holding short positions” in Adani rope also influenced markets in Asia,
stocks, which simply put it is betting namely China and Japan.
on the stock falling. Hindenburg However, in the domestic mar-
exposed its hand as it made huge ket, Adani Group firms’ losses bal-
money with the fall of Adani stocks looned to more than USD 100 bil-
immediately following the publica- lion after the Chairman of the group
tion of the report on January 24. In Gautam Adani declared that the
the summary of the long response by flagship firm was taking a U-turn
Adani Group, it said the report was with its follow-on public offer. BSE
“nothing but a lie”. key indices Sensex surged 224 points
“The document is a malicious to 59,932.24 while NSE Nifty50 lost 5
combination of selective misinfor- points to 17,610.40 on Thursday.
mation and concealed facts relating On Thursday, shares of Adani
to baseless and discredited allega- Group flagship firm, Adani Enter-
tions to drive an ulterior motive,” the prises, were down 26 per cent to Rs
Adani Group’s response said. 1,565.30 apiece. In a span of five ses-
Adani Group, in its 413-page sions, it has lost more than Rs 1,719.65
report, has also responded to all 88 or declined over 52.35 per cent.
questions raised by Hindenburg. Adani Group Chairman Gautam Adani addresses the investors after the withdrawal of the Adani Ports and SEZ lost Rs
It went on to say the report by 35.65 or dropped 7.20 per cent to Rs
the US-based firm was intended only fully-subscribed Adani Enterprises Ltd Follow-on Public Offer (FPO) on Thursday. (ANI) 459.50 on Thursday morning. The
to create a “false market in securities” firm’s shares had lost more than Rs
to enable Hindenburg, an admitted ethical short seller”. It added the re- Jatin Jalundhwala, Group Head 224.10 or 32.78 per cent in a period
short seller, to book massive finan- port was “nothing but a lie”. - Legal, Adani Group, in a statement of five days. Adani Green’s shares
cial gain through “wrongful means at A short seller in the securities earlier this week, said, “We (the dropped 10 per cent to Rs 1,039
the cost of countless investors”. market books gain from the subse- Group) are evaluating the relevant apiece, while it lost Rs 588 36.15 per
Adani Group on Sunday said quent reduction in prices of shares. provisions under US and Indian laws cent in just five days.
the recent report by Hindenburg The Adani Group states that by for remedial and punitive action FMCG firm Adani Wilmar
Research was not an attack on any “holding short positions” in Adani against Hindenburg Research.” dropped 5 per cent to Rs 421 apiece
specific company but a “calculated stocks, it is betting on the stock falling. Reportedly, the research firm, on Thursday morning while it lost Rs
attack” on India, its growth story, Hindenburg exposed its hand as in its report on Tuesday, raised con- 95 or dropped more than 18 per cent
and ambitions. it made huge money with the fall of cerns about shares of Adani group in a span of five days.
“This is not merely an unwarrant- Adani stocks immediately following companies having a possibility of de- Adani Transmission shares went
ed attack on any specific company the publication of the report on Jan- clining from their current levels, ow- down 10 per cent flat to Rs 1,551.15
but a calculated attack on India, the uary 24. ing to high valuations. apiece in the morning trade on
independence, integrity and qual- Earlier on Thursday, Adani The timing of the report by Hin- Thursday. The firm had lost Rs 575
ity of Indian institutions, and the Group said it was mulling legal op- denburg Research, Adani Group had or dropped 27 per cent in just 5 days.
growth story and ambition of India,” tions in the US and India against said is “clearly betrays a brazen, mala On Thursday, Adani Group
the Adani Group said in a 413-page Hindenburg Research after its re- fide intention to undermine” the Chairman Gautam Adani said it
response. In its response to the Hin- port accused firms owned by Gautam Adani Group’s reputation with the would not be “morally correct” to go
denburg Research, the Adani Group Adani of market manipulation and “principal objective of damaging” the ahead with the Rs 20,000-crore share
has attacked Hindenburg as “an un- accounting fraud. group’s Follow-on Public Offering in the current market condition.

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