Thursday, March 30, 2023
  • Login
Euro Times
No Result
View All Result
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology
Euro Times
No Result
View All Result

India’s Adani hits back at Hindenburg, insists made full disclosure By Reuters

by Reuters
January 29, 2023
in Finance
Reading Time: 3 mins read
A A
0
Home Finance
Share on FacebookShare on Twitter


© Reuters. FILE PHOTO: The logo of the Adani Group is seen on the facade of its Corporate House on the outskirts of Ahmedabad, India, January 27, 2023. REUTERS/Amit Dave/File Photo

By Jayshree P Upadhyay, Aditya Kalra and Aditi Shah

NEW DELHI (Reuters) – India’s Adani Group issued a detailed response on Sunday to a Hindenburg Research report that sparked a $48 billion rout in its stocks, saying it complies with all local laws and had made the necessary regulatory disclosures.

The conglomerate led by Asia’s richest man, the Indian billionaire Gautam Adani, said last week’s Hindenburg report was intended to enable the U.S.-based short seller to book gains, without citing evidence.

For 60-year-old Adani, the stock market meltdown has been a dramatic setback for a school-dropout who rose swiftly in recent years to become the world’s third richest man, before slipping last week to rank seventh on the Forbes rich list.

Adani Group’s response comes as its flagship company, Adani Enterprises, pushes ahead with a $2.5 billion share sale. This has been overshadowed by Hindenburg’s report, which flagged concerns about debt levels and the use of tax havens.

“All transactions entered into by us with entities who qualify as ‘related parties’ under Indian laws and accounting standards have been duly disclosed by us,” Adani said in the 413-page response issued late on Sunday.

“This is rife with conflict of interest and intended only to create a false market in securities to enable Hindenburg, an admitted short seller, to book massive financial gain through wrongful means at the cost of countless investors,” it added.

Hindenburg did not immediately respond to a request for comment on the Adani response on Sunday.

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.

Adani said on Thursday that it is considering taking action against Hindenburg, which responded on the same day by saying it would welcome such a move.

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 1 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% downside due to what it called “sky-high valuations”.

Adani’s response stated that over the past decade, its group companies have “consistently de-levered”.

Defending its practice on pledging shares of its promoters – or key shareholders – the Adani Group said that raising financing against shares as collateral was common practice globally and loans are given by large institutions and banks on the back of thorough credit analysis.

The group added there is a robust disclosure system in place in India and its promoter pledge positions across portfolio companies had dropped from more than 50% in March 2020 in some listed stocks, to less than 20% in December 2022.

‘SAIL THROUGH’

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

Adani’s response included more than 350 pages of annexes that included snippets from annual reports, public disclosures and earlier court rulings.

Hindenburg, Adani said, had sought answers to 88 questions in its report, but 65 of them were related to matters that have been disclosed by Adani portfolio companies in annual reports.

The rest, Adani said, relate to public shareholders and third parties, and some were “baseless allegations based on imaginary fact patterns”.

Hindenburg, known for having shorted electric truck maker Nikola Corp and Twitter, said it holds short positions in Adani companies through U.S.-traded bonds and non-Indian-traded derivative instruments.

Adani also responded to allegations by Hindenburg relating to the company’s auditors, saying “all these auditors who have been engaged by us have been duly certified and qualified by the relevant statutory bodies.”

Its response comes just hours ahead of India market opening, when the $2.5 billion secondary share sale begins its second day of subscription. Friday’s plunge took Adani Enterprises shares below the issue price, raising doubts about its success.

In a separate statement on Sunday, Adani Group’s chief financial officer Jugeshinder Singh said it is focused on the share sale and is confident it will succeed. He also said its anchor investors have shown faith and remain invested.

“We are confident the FPO (follow-on public offering) will also sail through,” he said.



Source link

Tags: AdaniDisclosurefullHindenburghitsIndiasInsistsReuters
Previous Post

Adani Group Says Hindenburg Report Constitutes Securities Fraud Under Indian Law

Next Post

Asia’s richest man in eye of a storm By Reuters

Related Posts

Austerity for the Plebes, Bank Rescues for the Rich

by Yves Smith
March 30, 2023
0

Yves here. Supposedly super duper bank reforms after the crisis have done little to shore up confidence, particularly among the...

Commercial-property losses will add to banks’ woes

by Euro Times
March 30, 2023
0

Ask an investor to describe the outlook for commercial property and you will get a colourful response. “Office is a...

Governments Can’t Blame Inflation on Energy and Putin Anymore

by Daniel Lacalle
March 30, 2023
0

At the end of February 2023, the price of oil (WTI and Brent), Henry Hub and ICE natural gas, aluminum,...

Politics, Not Markets, Makes Banking Unstable

by Alexander W. Salter
March 30, 2023
0

Is fractional-reserve banking inherently unstable? Over at National Review, Edwin Burton, a visiting economics professor at the University of Virginia,...

Key Topics and Takeaways From ExchangeETF 2023

by Euro Times
March 29, 2023
0

By Michael Prendergast, SVP, Senior ETF Product Specialist, Ultimus Fund Solutions  The 2023 ExchangeETF Conference was an important gathering for...

£2bn poured into NS&I as savers seek security on deposits

by Anna Wise
March 29, 2023
0

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emailsSign up...

Next Post

Asia's richest man in eye of a storm By Reuters

Can The Next Recovery Cycle Push Ethereum Price To $2300?

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Terra Luna Classic Network Upgrade; Joint L1 Task Force Q2 Plan

March 30, 2023

Constellation Brands taps Tastemade to help draw new customers

March 30, 2023

Police shooting of Black man referred to UK prosecutors

March 30, 2023

Policymakers struggle to rein in sticky core inflation

March 30, 2023

Marketmind-World markets leaving March like a lamb By Reuters

March 30, 2023

LME Nickel Buyers Worried About Fraudulent Nickel Scandal

March 30, 2023
Euro Times

Get the latest news and follow the coverage of Business & Financial News, Stock Market Updates, Analysis, and more from the trusted sources.

CATEGORIES

  • Business
  • Cryptocurrency
  • Finance
  • Health
  • Investing
  • Markets
  • Politics
  • Stock Market
  • Technology
  • Uncategorized
  • World

LATEST UPDATES

Terra Luna Classic Network Upgrade; Joint L1 Task Force Q2 Plan

Constellation Brands taps Tastemade to help draw new customers

  • Disclaimer
  • Privacy Policy
  • DMCA
  • Cookie Privacy Policy
  • Terms and Conditions
  • Contact us

Copyright © 2022 - Euro Times.
Euro Times is not responsible for the content of external sites.

No Result
View All Result
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology

Copyright © 2022 - Euro Times.
Euro Times is not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In