Indian Tycoon Adani Denounces Hindenburg Report as ‘Targeted Misinformation’

An Adani sign is seen displayed in Townsville, Australia, on May 5, 2019. Ian Hitchcock/Getty Images

Indian billionaire Gautam Adani has refuted a report by U.S.-based short-seller Hindenburg Research, saying that it contains “targeted misinformation” aimed at tarnishing the conglomerate’s reputation.

The Hindenburg report, published on Jan. 24, accused the Indian conglomerate Adani Group—which is led by Mr. Adani—of engaging in stock manipulation and accounting-fraud schemes over decades.

At the company’s annual general meeting on July 18, Mr. Adani said the report was a “deliberate and malicious attempt” to damage its reputation and generate profits by driving down the company’s stock prices.

Mr. Adani alleged that the report contains “discredited allegations” dating back to the period 2004–15, further noting that its publication coincided with the company’s plan to launch its largest follow-on public offer.

“The report was a combination of targeted misinformation and discredited allegations, the majority of them dating from 2004 to 2015. They were settled by the appropriate authorities at that time,” he said.

Mr. Adani claimed that an expert committee constituted by the Supreme Court of India had confirmed the quality of the company’s disclosures and concluded that there were no instances of any breach.

“The report of the expert committee was made public in May 2023,” he added. “The expert committee did not find any regulatory failure.”

“While SEBI is still to submit its report, we remain confident of our governance and disclosure standards,” Mr. Adani said, referring to the Securities and Exchange Board of India (SEBI).

The group’s listed companies lost more than $100 billion in market value earlier this year after Hindenburg Research raised several governance concerns. The group has denied wrongdoing, though the controversy sparked a political fight between the ruling party and the opposition that wanted a parliamentary investigation.

The Supreme Court has asked markets regulator SEBI to probe some of the allegations made. Reuters reported in May that the regulator has “drawn a blank” in investigations into suspected violations in overseas investments in the Adani Group.

“The foundation of SEBI’s suspicion that led to investigations into the overseas entities’ ownership is that they have ‘opaque’ structures,” said the panel in a report dated May 6.

The Hindenburg report, and its fallout, is seen as one of the biggest career challenges to face the billionaire, whose business interests range from ports, airports, mining, and power to media and cement.

Its report had questioned how the Adani Group has used offshore entities in tax havens such as Mauritius and the Caribbean islands, adding that certain offshore funds and shell companies “surreptitiously” own stock in Adani’s listed firms.

Hindenburg’s report also said five of seven key listed Adani companies have reported current ratios—a measure of liquid assets minus near-term liabilities—of below one which it said suggested “a heightened short-term liquidity risk.”

It said key listed Adani companies had “substantial debt,” which has put the entire group on a “precarious financial footing” and that shares in seven Adani listed companies have an 85 percent downside due to what it called “sky-high valuations.”

Reuters contributed to this report.