‘Have emerged stronger…’: Gautam Adani opens up on Hindenburg episode

mangaloretoday.com

New Delhi, Jan 25, 2024: Adani Group chairman Gautam Adani said his ports-to-power empire has “emerged stronger” while recollecting the Hindenburg episode, exactly a year after the US-based short-seller came out with a scathing report against the conglomerate.

 

“I am under no illusion that this is the end of such attacks. I believe we have emerged stronger from this experience and more unwavering in our resolve to continue our humble contribution to the India growth story,” wrote Adani in The Times of India.

It may be noted that most Adani Group companies have recovered the losses they encountered after Hindenburg Research released its report on January 25, 2023.

For context, the US short-seller’s report accused the conglomerate of fraudulent practices and stock manipulation. The report led to a combined market cap erosion of $150 billion and even forced the conglomerate to call off the Rs 20,000 crore FPO for its flagship company, Adani Enterprises.

While Adani Group denied the allegations firmly, it not only led to a slide in Adani Group stocks but also became a matter of political debate.

An investigation was initiated by the Supreme Court, which had to set up an independent committee to investigate the matter, in addition to another parallel probe by the markets regulator Securities and Exchange Board of India (SEBI).

As the situation stands, none of Hindenburg’s accusations against Adani have been proven so far.

Gautam Adani went on to suggest that the Hindenburg episode was more than just an attack on the financial markets.

"Impact of short-selling attacks is normally limited to financial markets. This, however, was a unique two-dimensional attack: a financial one, of course, and one that played out in political space, each feeding off the other,” he wrote.

Adani went on to say that if Hindenburg’s plan had succeeded, it would have led to a “catastrophic situation” for the country.

"Had our detractors’ plan fully succeeded, domino effects could have crippled many critical infrastructure assets, seaports, and airports to power supply chains - a catastrophic situation for any country,” Adani said.

Adani, however, went on to say that the trials and tribulations of the past year have provided valuable lessons. "Trials and tribulations of past year have taught us valuable lessons, made us stronger and reaffirmed our faith in Indian institutions,” he wrote.

“While this devious attack on us - and our strong countermeasures - will no doubt become a case study, I felt compelled to share my learnings because, it was us today, it could be someone else tomorrow,” Adani added.

Courtesy: India Today