Group terms Hindenburg Research report as ‘maliciously mischievous, un-researched’
A day after Adani Group stocks took a beating amid report by Hindenburg Research claiming that the Indian conglomerate had engaged in stock manipulation and accounting fraud scheme over the course of last few decades, the group says it plans to sue US-based investment research firm.
“We are evaluating the relevant provisions under US and Indian laws for remedial and punitive action against Hindenburg Research,” the group said on January 26, a day after the report published before the Indian firm’s ₹20,000 crores follow on public offer (FPO).
The “maliciously mischievous, unresearched” report affected the Adani Group, its shareholders and investors, it said.
“The volatility in Indian stock markets created by the report is of great concern and has led to unwanted anguish for Indian citizens,” Jatin Jalundhwala, Adani Group Head, Legal, said.
“Clearly, 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,” Jalundhwala said.
“We are 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 Adani Enterprises,” the Group said.
The FPO of Adani Enterprises, the group flagship, opens on Friday and has received offers worth ₹9,000 crore as against a quota of ₹6,000 crore worth of shares for the anchor investors.