In response to Hindenburg’s report, the Adani group has rebutted the claims as “malicious, bad faith and brazen”, intended to damage the group’s upcoming follow-up public offering. “The timing of the report’s publication clearly reveals a brazen and bad faith intent to undermine Adani Group’s reputation with the primary aim of damaging the upcoming follow-on public offering of Adani Enterprises, India’s largest FPO,” it says. Jugeshinder Singh, Group CFO, Adani Group.
He said that the investment community has always placed its faith in the Adani Group on the basis of detailed analysis and reports prepared by financial experts and leading national and international credit rating agencies. “Our informed and well-informed investors are not swayed by one-sided, motivated and unsubstantiated reports with vested interests.”
Singh said that Adani Group has a diverse portfolio of market-leading companies managed by CEOs of the highest professional caliber and supervised by experts in various fields over several decades. “The group has always complied with all laws, regardless of jurisdiction, and upholds the highest standards of corporate governance.”
Notably, Hindenburg’s report came days before Adani Enterprises’ Rs 20 billion follow-up public issuance, which opens on January 27 and closes on January 31. The offer from the main investors will begin on January 25, according to the company’s filing with SEBI. The FPO committee of the company’s board of directors set the minimum price for the issue at ₹3,112-3,276 per share, a 13.5% discount to the low end of the January 18 closing price. The board also approved a discount of Rs 64 per FPO equity share for individual retail investors. The conglomerate plans to use almost Rs 10,869 crore of the Rs 20,000 crore to finance the capital expenditure requirements of its subsidiaries in connection with certain green hydrogen ecosystem projects, upgrade works of certain existing airport facilities and construction of a brand new highway. In addition, it intends to use Rs 4,165 crore for repayment of certain loans from the company and its three arms: Adani Airport Holdings Ltd, Adani Road Transport Ltd and Mundra Solar Ltd. As of September 2022, Adani Enterprises was fully in debt. of around ₹40,000 crore.