Adani Enterprises is working to conclude a $2.5 billion share sale, but Hindenburg claims that the 413-page response leaves most of its questions unanswered.
Mumbai: An indication that the billionaire’s denial of fraud claims from American short seller Hindenburg Research is mostly falling on deaf ears is the fact that the majority of Adani Group’s companies prolonged a $51 billion stock selloff. Dollar bonds also decreased.
As trading began in Mumbai, Adani Green Energy Ltd., Adani Total Gas Ltd., and Adani Transmission Ltd. all had more than 10% declines, while Gautam Adani’s main company, Adani Enterprises Ltd., defied the trend by increasing 6.3%.
Adani Enterprises is working to conclude a $2.5 billion share sale, but Hindenburg claims that the 413-page response leaves most of its questions unanswered. The drama also poses a risk of eroding public confidence in India, which until recently was one of Wall Street’s top investment destinations, and accelerating the transition toward China’s openings.
Hugh Young, the Asia Chairman of abrdn plc, stated that it “definitely isn’t a great advertisement for India and risks harming short-term sentiment.” “The issue is more widespread since we don’t invest in Adani.”
Approximately 65 of the 88 questions have been answered in the conglomerate’s public disclosures, according to Adani’s rebuttal, which was published on Sunday. Adani also referred to the short seller’s actions as “nothing short of a calculated securities fraud under applicable law.” Reiterating its commitment, it said it would “use our rights to pursue remedies to safeguard our stakeholders before the competent authorities.”
In the most recent twist, Hindenburg asserted on Monday that Adani’s response has not adequately addressed 62 of the 88 queries submitted by the short seller.