Adani may take legal action against Hindenburg’s ‘mischievous’ report

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After a report by American short-seller Hindenburg Research left Adani Group investors poorer by Rs 1 lakh crore in 1 day, the conglomerate today said it is evaluating legal action.

“We are evaluating the relevant provisions under the US and Indian laws for remedial and punitive action against Hindenburg Research,” Adani Group’s legal head Jatin Jalundhwala said in a statement.

Describing Hindenburg’s report as maliciously mischievous and unresearched, the company said it is deeply disturbed by this intentional and reckless attempt by a foreign entity to mislead the investor community and the general public, undermine the goodwill and reputation of the Adani Group and its leaders, and sabotage the FPO (Follow-on Public Offering) from

.

“The volatility in Indian stock markets created by the report is of great concern and has led to unwanted anguish for Indian citizens,” it said.

The report and its unsubstantiated contents were designed to have a deleterious effect on the share values of Adani Group companies as Hindenburg Research, by their own admission, is positioned to benefit from a slide in Adani shares, the Ahmedabad-based conglomerate said.

Adani Group CFO Jugeshinder Singh had on Wednesday alleged that the timing of the report’s release was done with the mala fide intention to damage its FPO, which opens for public subscritption from tomorrow.

While making several allegations around accounting practices, stock manipulation and other corporate governance practices, Hindenburg also said they have a short position in Adani Group companies through US-traded bonds and non-Indian-traded derivative instruments.More to come….



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