Adani group said “This is not merely an unwarranted attack on any specific company but a calculated attack on India, the independence, integrity and quality of Indian institutions,”
Sometime back Adani responded back with a 412-page rebuttal to the allegations made by Hindenburg group.
The report is available online and also on SEBI’s website. But let me break this up into simple lines.
Back in 2015 a similar accusation was made on the group, and they had responded to 21 Questions which the group had made a public disclosure.
They further state that the group is audited by some of the big audit firms.
Adani group was accused of inflating the revenue to which group has responded that out of the 9 listed companies 6 get reviewed by sector specific regulators.
One specific accusation was that the promoters have pledged large part of their shares. In simple words the promoters don’t have money and they are taking loans by pledging their shares to the bank or financial institution. To which the group mentioned that only 4% of their shares are pledged.
If you see the presentation provided by Adani group, they have mentioned the names of auditing companies of India and abroad who have given them Stable rating.
So basically, Aadani group is saying that the questions that Hindenburg is asking is already available in public domain part of the disclosure done by the group back in 2015.
So what happens to the stocks now you may ask. Looks like till the budget nothing is stable and we should right now wait and watch.