Adani says it is confident in governance and disclosure standards in the five-month Hindenburg report

Five months after a stunning short seller report slashed his empire’s market value by billions of dollars, Gautam Adani has reaffirmed his confidence in the governance and transparency standards of his ports-to-energy company.

The chairman of the Adani Group said that a team of experts appointed by the Supreme Court found no regulatory breach in the annual report of the group’s main company, Adani Enterprises Ltd.

On January 24, Hindenburg Research accused Adani of “brazen stock manipulation and accounting fraud” as well as utilising a “labyrinthian network” of front businesses for shady money transfers. Adani vigorously refuted these accusations and referred to the research as “a calculated attack on India.”

The US-based short seller “on the event of our Republic Day” issued the report, according to Adani, 61, who said this in the annual report.

The study reduced the market value of the group’s listed firms by over USD 150 billion at their lowest point, which caused Adani to lose the title of wealthiest Indian.

The study, he said, “was a combination of targeted misinformation and out-of-date, disproven allegations designed to harm our reputation and generate profits through a deliberate drive-down of our stock prices.”

“Several adverse consequences” came about as a result of the short-selling affair, he said. “Despite the fact that we immediately responded with a thorough denial, a number of vested interests attempted to take advantage of the short seller’s allegations. These organisations promoted false narratives on numerous news and social media platforms and participated in them.

The Supreme Court-appointed expert group was then referred to by him for further investigation.

He said that the group was made up of people who were respected for their independence and honesty. “The Expert Committee found no regulatory shortcomings. The Committee’s Report noted that the mitigating actions taken by your firm helped restore trust while also mentioning that there were plausible allegations of coordinated market destabilisation in India.

He said that the panel had also attested to the group’s disclosures’ high quality and had “found no instance of regulatory failure or any breach.”

“We remain confidence in our governance and transparency standards,” he said, “even if the (capital market regulator) SEBI is yet to submit its conclusion (on a separate investigation into the claims against Adani group) in the months to come.

In a late-night statement on Monday, his organisation said it was not aware of any subpoenas issued to US investors by American authorities in response to the claims around the Hindenburg.

“All of our disclosures are a matter of public record,” the company said. It is customary for different authorities to want simple access to publicly available information with citations.

It was emphasised once again that “Adani Portfolio companies and its businesses have acted in accordance with the regulations and accounting standards of the jurisdictions in which they operate.”

Adani Group has “taken mitigation measures such as debt reduction and fresh infusion, which led to increase in investor confidence,” according to the Supreme Court-appointed expert committee. According to the statement, SEBI was looking into certain elements, and Adani portfolio companies were responding to their inquiries.

“We request to avoid needless speculation at this time and wait for SEBI and the Supreme Court to complete their work and submit their findings,” the statement said.

According to the statement, Adani has a solid corporate governance structure in place and is dedicated to abiding by all relevant laws and regulations.

“Only APSEZ is a corporate issuer among our portfolio firms AGEL, ATL, APSEZ, and AEL, which all issue global capital market paper. There is just one corporately issued instrument by AGEL. The statement said, “All other issues are limited group issuances. “The majority of Adani Portfolio Companies’ bond issuance is done so in accordance with Regulation S, 144A, and Regulation D. Most bonds (other than Regulation D) are listed on the Singapore Exchange and/or the India Index.

These bonds were issued as non-convertible debtentures in accordance with Reserve Bank of India’s ECB guidelines and are subject to strict current ECB guidelines and regulation of the central bank, the bank said, noting that the offering circulars for these bonds contain full and comprehensive disclosures.

Additionally, post-issuance disclosures and filings are issued promptly and in accordance with the covenant package, according to all applicable regulatory obligations.