Shares of Adani-linked companies slump as Indian conglomerate issues defense to short-seller claims


Stocks of affiliated companies founded by Asia’s richest man Gautam Adani continued to fall in Mumbai markets on Friday, extending a slide after a U.S. short seller published its two-year investigation into the group’s business practices.

The shares of flagship firm Adani Enterprises

sank as much as 20% and other linked companies saw similar losses on Friday. The sell-off intensified for the seven Mumbai-listed companies losing a combined $47 billion market cap since Hindenburg Research’s report came out on Wednesday.

Including Adani’s recent investments in cement – ACC

and Ambuja Cements

– Adani has lost a total $51 billion in market value since Wednesday.

The Adani Group, which went ahead with a share sale for Adani Enterprises, responded to the 100-page short seller dossier on Friday, which alleged “brazen stock manipulation and accounting fraud” from the Indian conglomerate.

The group disputed the claims in a conference call with bondholders of Adani Ports & Special Economic Zone
branding Hindenburg’s report as “bogus” and telling investors the allegations of accounting fraud were “devoid of facts,” according to Bloomberg.

In an 18-slide presentation named the “myths of short seller” accompanying the investor call and put on its website, the group stated eight of its nine portfolio companies are audited by one of the “big six” auditors. It added that six of its companies are “subject to specific regulatory review” for revenue, cost and capital spending.

The presentation said many of Hindenburg’s claims were already disclosed by the company. It also defended itself over accounting, leverage and governance concerns.

The Adani Group said publicly on Thursday that it was exploring taking legal action against U.S.-based Hindenburg Research. Its head of legal Jatin Jalundhwala had called it a “maliciously, mischievous, unresearched” report.

Hindenburg hit back in a tweet shortly after.

“Regarding the company’s threats of legal action, to be clear, we welcome it,” the research firm said. “If Adani is serious, it should also file suit in the US where we operate. We have a long list of documents we would demand in the legal process.”

Pershing Square Capital Management founder Bill Ackman called the Hindenburg report “highly credible and extremely well researched” in a tweet early Friday.


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Jacob Keiter is a husband, a writer, a journalist, a musician, and a business owner. His journey to becoming a writer was one that was paved with challenges, but ultimately led him to find his true calling. Jacob's early years were marked by a strong desire for creative expression. He was always drawn to music, and in his youth, he played in several bands, chasing the elusive promise of fame and success. However, despite his best efforts, Jacob struggled to find the recognition he craved. It wasn't until he hit a low point in his life that Jacob discovered his love for writing. He turned to writing as a form of therapy during a particularly difficult time, and found that it not only helped him to cope with his struggles, but also allowed him to express himself in a way that he had never been able to before. Jacob's writing skills quickly caught the attention of others, and he soon found himself working as a journalist for The Sun out of Hummelstown. From there, he went on to contribute to a variety of publications, including the American Bee Journal and Referee Magazine. Jacob's writing style is reflective of traditional journalism, but he also infuses his work with a unique voice that sets him apart from others in his field. Despite his success as a writer, Jacob also owns another business, JJ Auto & Home, which specializes in cleaning. Jacob's commitment to excellence is evident in all of his endeavors, whether it be in his writing or in his business ventures. Today, Jacob is the author of two books and continues to inspire others through his writing. His journey to becoming a writer serves as a reminder that sometimes our darkest moments can lead us to our greatest achievements.

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