Adani shares fall as short-seller Hindenburg Research flags its ‘substantial debt’

Group CFO terms report a ‘malicious combination of misinformation and stale, baseless and discredited allegations’

Updated - January 30, 2023 04:08 pm IST

Published - January 25, 2023 07:40 pm IST - AHMEDABAD

Adani Group chairman Gautam Adani. File

Adani Group chairman Gautam Adani. File | Photo Credit: AFP

Shares of the Adani group’s listed companies, including its recently acquired cement and media units, fell across the board on Wednesday with losses ranging from 1.5% to 8% in the wake of U.S. based short-seller Hindenburg Research raising concerns about the Gujarat-based conglomerate’s “substantial debt” that had put the entire group on a “precarious financial footing.”

“Today we reveal the findings of our 2-year investigation, presenting evidence that the... Adani Group has engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades,” Hindenburg Research said in its report published on its website on January 24. “Our research involved speaking with dozens of individuals, including former senior executives of the Adani Group, reviewing thousands of documents” and site visits in almost half a dozen countries, it said, adding that it had “taken a short position” on Adani group companies through U.S.-traded bonds and derivative instruments traded outside India.

The Adani group dismissed the report terming it a “malicious combination of selective misinformation and stale, baseless and discredited allegations”.

“The timing of the report’s publication clearly betrays a brazen, mala fide intention to undermine the Adani Group’s reputation with the principal objective of damaging the upcoming follow-on Public Offering from Adani Enterprises,” Group CFO Jugeshinder Singh said in a statement. 

The group’s flagship company Adani Enterprises is set to tap the market with a ₹20,000 crore follow-on public offering that opens to the public on January 27.

Also Read | Warning bells: On the Adani saga

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in


Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.