Adani Group May Sue Hindenburg For 'mischievous, Mala Fide' Report
The Adani Group plans to sue US-based investment research firm Hindenburg Research for a “malafide and mischievous” report published before the Indian firm’s Rs 20,000 crore follow on public offer (FPO) pulled down company shares on Wednesday.
“We are evaluating the relevant provisions under US and Indian laws for remedial and punitive action against Hindenburg Research,” the group said in a statement.
Responding to Adani Group’s statement, Hindenburg said it stands by its report, adding that it has a long list of documents it will demand in a legal discovery process.
“In the 36 hours since we released our report, Adani hasn’t addressed a single substantive issue we raised,” Hindenburg Research said on Twitter.
It further added, “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 a legal discovery process.”
The ports-to-power conglomerate had said that the “maliciously mischievous, unresearched” report affected the Adani Group, its shareholders and investors.
“The volatility in Indian stock markets created by the report is of great concern and has led to unwanted anguish for Indian citizens. 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,” said Jatin Jalundhwala, Adani Group Head, Legal.
Hindenburg’s report admitted the firm holds short positions in Adani Group companies through US-traded bonds and non-Indian-traded derivatives, along with other non-Indian-traded reference securities.
“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,” said the Adani statement.
The FPO of Adani Enterprises, the group flagship, opens on Friday and has received offers worth Rs 9,000 crore as against a quota of Rs 6,000 crore worth of shares for the anchor investors.
Abu Dhabi Investment Authority, Maybank Asia, Goldman Sachs, Nomura, Societe Generale, Jupiter, BNP Paribas, Al Mehwar, Citi group, Morgan Stanley participated in the issuance
The Elusive Nature Of Fraud Detection: Exploring The Auditor's Dilemma
In the intricate world of financial reporting, auditors serve as guardians of integrity, tasked with uncovering discrepa... Read more
The Battle For Depositors: US Lenders Ramp Up Efforts Amidst Rate Uncertainty
In the competitive landscape of the US banking sector, retaining depositors is paramount for lenders seeking to maintain... Read more
Beyond Capital: Unveiling The Complexities Of Bank Failure Prediction
In the realm of banking, the ability to predict and prevent failures is paramount for financial stability and consumer c... Read more
Central Banks And The Economic Horizon: Steering Through Uncertaintie
In the evolving landscape of global financial markets, the strategic role of central banks has come under intense scruti... Read more
Transforming Financial Operations With Robotic Process Automation
Author: Ricardo Goulart ... Read more
The Role Of Machine Learning In Fraud Detection
Author: Gerardine Lucero  ... Read more