In a resolute reaffirmation of its governance and disclosure standards, the Adani Group, led by Gautam Adani, remains confident in the face of recent challenges. Five months after a bombshell short seller report caused a significant market value drop in his conglomerate, Adani Enterprises Ltd, Adani expressed unwavering assurance in the company’s integrity and transparency. The annual report highlights findings from a panel of experts appointed by the Supreme Court, which validated the absence of regulatory failure within the Group.
The short seller report, published by Hindenburg Research on January 24, unleashed a wave of allegations including stock manipulation, accounting fraud, and the use of intricate shell companies for illicit financial transactions. Adani vehemently denied these claims and labeled the report a “calculated attack on India.” The market turbulence caused by the report resulted in a temporary loss of nearly USD 150 billion in market value and caused Adani to temporarily relinquish his title as the richest Indian.
Adani, aged 61, emphasized that the short seller report was strategically timed to coincide with India’s Republic Day. He described the report as a concoction of false information and outdated allegations, explicitly designed to tarnish the conglomerate’s reputation and artificially deflate stock prices. Despite issuing a comprehensive rebuttal promptly, various entities exploited the claims made by the short seller, spreading false narratives across multiple news and social media platforms.
To shed light on the matter, Adani pointed to the Supreme Court-appointed expert committee, composed of individuals recognized for their independence and integrity. The committee’s report confirmed the absence of regulatory failure or any breaches within the Adani Group. Furthermore, it commended the Group’s efforts to restore confidence by implementing effective mitigating measures. Notably, the committee raised concerns about credible charges of orchestrated destabilization of the Indian markets.
While the Securities and Exchange Board of India (SEBI) is yet to submit its report on a separate investigation into the allegations against the Adani Group, Adani expressed unwavering confidence in the company’s governance and disclosure standards. In a late evening statement, the Group also clarified that it had no knowledge of any subpoenas issued to US investors by American authorities following the Hindenburg allegations.
Adani stressed that all the Group’s disclosures are publicly accessible and that regulatory bodies routinely seek access to this information for reference. He further reiterated that the Adani Group and its portfolio companies adhere strictly to the regulations and accounting standards of the jurisdictions in which they operate.
The statement emphasized that the Adani Group’s adherence to a robust corporate governance framework and its unwavering commitment to comply with applicable laws and regulations. The Group’s portfolio companies, including AGEL, ATL, APSEZ, and AEL, issue global capital market paper, primarily under Regulation S, 144A, and Regulation D. The bonds issued by these entities adhere to the stringent guidelines and regulations set by the Reserve Bank of India.
The Group assured that all offering circulars for these bonds contain comprehensive and transparent disclosures. Furthermore, post-issuance disclosures and filings are made in a timely manner, in accordance with relevant regulatory requirements and the covenant package.
Amidst the ongoing investigation by SEBI and the Supreme Court, the Adani Group urged stakeholders to avoid speculative conclusions and await the completion of the regulatory bodies’ work and submission of their findings.
