Adani Group has become stronger after Hindenburg 'attacks': Gautam Adani at AGM

The Adani Group has emerged stronger through perseverance after a short-seller accused it of stock manipulation activities and more, Adani Enterprises chairman Gautam Adani said on Monday (June 24).

"The true measure of success is our ability to stand firm in the face of adversity," Adani told the annual general body meeting of the Adani Enterprises in New Delhi.

The fightback

"Perseverance never more evident than what we demonstrated last year,” he said, without taking the name of Hindenburg.

“(The) Adani Group fought back against attacks on integrity, and reputation by foreign short sellers. Proved no challenge can weaken the foundations of the Adani Group," he added

“We were faced with baseless accusations made by a foreign short seller that questions our decades of hard work.”

Integrity, reputation

Adani said his group had only weathered the storm but fought hard to defend its integrity and reputation.

This proved that no challenge could undermine the foundational strength of the Adani Group, he said.

He pointed out that the short-seller’s attack was timed to coincide with a critical follow-on public offer from his group.

Committed to investors

Amid a probe into the allegations, the Group returned investors Rs 20,000 crore that had been raised through the FPO.

"Short-seller attack was designed to defame, do maximum damage, erode market value… The decision to return FPO proceeds underscored dedication to our commitment to the investors," he said.

"The challenges that tested us ultimately forged us into a stronger entity, more resilient and prepared for the future."

The allegations

Earlier this year, the Supreme Court gave a clean chit to the Adani Group and dismissed all allegations while reposing confidence in the power of the Securities and Exchange Board of India (SEBI).

Hindenburg's report alleged that Adani used tax havens and flagged concerns about debt in the company. It alleged that the company was engaged in stock manipulation activities.

The Adani Group termed the allegations "unsubstantiated speculations".