In a resolute display of confidence, Gautam Adani, Chairman of Adani Group, has reaffirmed the conglomerate’s commitment to robust governance and disclosure standards. Five months after an explosive short seller report sent shockwaves through the market, causing a significant decline in the group’s market value, Adani stands by the integrity of his empire. The annual report of Adani Enterprises Ltd, the group’s flagship firm, highlights the findings of a Supreme Court-appointed panel of experts that discovered no regulatory failure within the conglomerate.
The report, released on India’s Republic Day, accused Adani of stock manipulation, accounting fraud, and operating a complex web of shell companies for illicit financial transactions. These allegations, vehemently denied by the conglomerate, led to a substantial reduction in the group’s market value, amounting to nearly USD 150 billion at its lowest point. Consequently, Gautam Adani lost his position as the richest Indian.
Adani denounced the report as a deliberate attempt to tarnish the group’s reputation and manipulate stock prices for profit. He emphasized the adverse consequences of the short-selling incident, exacerbated by the propagation of false narratives across various media platforms. However, Adani points to the Supreme Court’s expert committee, which comprised individuals known for their independence and integrity, confirming the absence of regulatory failure or breaches within the conglomerate.
While the Securities and Exchange Board of India (SEBI) is still investigating the allegations against the Adani group and is yet to submit its report, Adani remains confident in the group’s governance and disclosure standards. The group has assured that all disclosures are publicly available and subject to scrutiny by various regulators. Adani’s portfolio companies and businesses have consistently adhered to the regulations and accounting standards of the jurisdictions in which they operate.
In response to Hindenburg’s allegations, Adani Group has taken proactive mitigation measures, such as reducing debt and injecting fresh capital, resulting in increased investor confidence. The expert committee appointed by the Supreme Court acknowledged these measures and also highlighted credible charges of concerted destabilization of the Indian markets. Furthermore, the committee affirmed the quality of the group’s disclosures and confirmed the absence of any regulatory failure or breaches.
Adani Group addressed concerns about potential US investor subpoenas, stating that they are unaware of any such subpoenas by American authorities following the Hindenburg allegations. The conglomerate emphasized that their disclosures are in line with the norms and regulations of the jurisdictions where they operate.
Adani Group urges stakeholders to refrain from engaging in speculation and instead await the findings of SEBI and the Supreme Court. The group maintains a strong commitment to corporate governance and diligently adheres to all applicable laws and regulations.
Adani’s portfolio companies, including Adani Green Energy Limited (AGEL), Adani Transmission Limited (ATL), Adani Ports and Special Economic Zone Limited (APSEZ), and Adani Enterprises Limited (AEL), issue global capital market papers. Most of these bonds are listed on the Singapore Exchange (SGX) and/or the India International Exchange (India INX) and comply with the regulations and guidelines set forth by the Reserve Bank of India (RBI) for External Commercial Borrowings (ECB). Adani Group ensures stringent adherence to these guidelines, providing full and complete disclosures in the offering circulars and timely post-issuance filings in accordance with regulatory requirements.
As SEBI and the Supreme Court continue their investigations, Adani Enterprises remains steadfast in its dedication to transparency and accountability, maintaining its position as a leading force in the realm of corporate governance.
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