intends The Adani Group of billionaire Gautam Adanithe response to the report of the research company, “Hindenburg”, after completing the offering of its subsidiary, “Adani Enterprise”, according to what was reported by the “Deccan Herald” newspaper, and Al Arabiya.net reviewed it.
The offering, which is the largest in India’s history, is scheduled to close on January 31, as it will raise about $2.5 billion, with the aim of financing the company’s capital expansions and debt reduction.
The group affiliated with India’s richest man said it would submit a full report to answer Hindenburg’s questions after the offering ends, according to some bondholders who attended discussions with Adani executives, though it provided few answers during the meeting.
The company prepared a report of 100 pages or more, although it sought legal advice to determine the most appropriate date for publishing the response, which will not be before January 31.
It is noteworthy that the American research company, “Hindenburg”, published its report, which warned of the danger of investing in the “Adani” group, just days before the start of the public offering of its leading company, Adani Enterprises Ltd, during which it said that its investigation, which lasted for about two years in the company’s business, revealed fraud. In the shares within a decades-long accounting fraud scheme, it also warned that the group’s debt was unsustainable and could collapse.
The research firm also took a short position on shares and debt of the Adani Group, via derivatives, which are not listed in India.
The company lost 50 billion dollars of its market value in just two sessions, while the losses erased a fifth of the “Gwatam Adani” fortune.
On Thursday, the Adani Group said it was considering taking legal action against the Hindenburg company, adding: “The report is maliciously offensive, false and unresearched.”