Adani Group to sue Hindenburg Research for its report, calling it a “maliciously mischievous, unresearched” report

The Adani Group intends to sue Hindenburg Research, a US-based investment research firm, for a report issued before the firm’s Rs 20,000 crore follow-on public offer (FPO) on Wednesday.

The group stated in a statement, “We are evaluating the relevant provisions under US and Indian laws for remedial and punitive action against Hindenburg Research.”

Jatin Jalundhwala, Adani Group’s Legal Head, said, ” The maliciously mischievous, unresearched report published by Hindenburg Research on 24 January 2023 has adversely affected the Adani Group, its shareholders, and investors.”

He added, “The volatility in Indian stock markets created by the report is of great concern and has led to unwanted anguish for Indian citizens. 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.”

According to Hindenburg’s report, the firm has short positions in Adani Group entities via US-traded bonds and non-Indian-traded derivatives, as well as other non-Indian-traded reference securities.

Adani said in a statement, “We are deeply disturbed by a foreign entity’s intentional and reckless attempt 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.”

The Adani Enterprises FPO, the group’s flagship, launches on Friday and has received proposals worth Rs 9,000 crore as against a quota of Rs 6,000 crore worth of shares for the anchor investors.