Mumbai: Calling Hindenburg Research’s report misleading, Adani Group Thursday said it was exploring legal and punitive actions against the research firm which said any action by the latter will be “meritless”.
Hindenburg Research and Adani Group came to loggerheads after the former in a report accused the latter of manipulating the company’s share prices.
Calling the report, maliciously mischievous and unresearched, Adani Group on Thursday said it has adversely affected its shareholders and investors.
"The volatility in Indian stock markets created by the report is of great concern and has led to unwanted anguish for Indian citizens", Jatin Jalundhwala, Group Head, Legal, Adani, said.
"Clearly, the report and its unsubstantiated contents were designed to have a deleterious effect on the share values of Adani Group companies as Hindenburg Research, by their own admission, is positioned to benefit from a slide in Adani shares," he said.
"We hold short positions in Adani Group Companies through US-traded bonds and non-Indian-traded derivatives, along with other non-Indian-traded reference securities", Hindenburg Research had disclosed.
"We are deeply disturbed by this intentional and reckless attempt by a foreign entity to mislead the investor community and the general public, undermine the goodwill and reputation of the Adani Group and its leaders, and sabotage the FPO (Follow-on Public Offering) from Adani Enterprises.
"We are evaluating the relevant provisions under US and Indian laws for remedial and punitive action against Hindenburg Research," the Adani Group said.
Hindenburg Research however said it stood by its findings, adding any action by Adani Group will be “meritless”.
“In the 36 hours since we released our report, Adani has addressed a single substantive issue we raised. At the conclusion of our report, we asked 88 straightforward questions that we believe give the company a chance to be transparent. Thus far, Adani has answered none of these questions”, Hindenburg Research said in a statement.
“Instead, as expected, Adani has resorted to bluster and threats. In a statement to media today, Adani referred to our 106-page, 32,000-word report, with over 720 citations and prepared over the course of 2 years, as “unresearched” and threaten “legal and punitive” action. To be clear, we will welcome it”, the financial research firm said.
“We fully stand by our report and believe any legal action taken against us would be meritless”, it said.
“If Adani is serious, it should also file suit in the United States where we operate. We have a long list of documents that we would demand in a legal discovery process”, it said.
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