Adani Group stocks rallied up to 6 percent in Tuesday's trade, after billionaire Gautam Adani reiterated that the US short-seller Hindenburg's report released in late January this year was a combination of misinformation and discredited allegations. While Adani Group's flagship entity, Adani Enterprises surged 4 percent, Adani Wilmar, Adani Power, Adani Transmission and Adani Green Energy share prices gained between 3 percent and 6 percent.
Speaking at the annual general meeting (AGM) of Adani Enterprises, the billionaire said he is confident of its governance and disclosure standards after a Supreme Court panel found no lapses at the conglomerate.
In his first comments on the findings, Adani Chairman Gautam Adani said, "The apex court panel confirmed the quality of our group’s disclosures and found no instance of any breach."
He further said that the Hindenburg report was "deliberate and malicious attempt aimed at damaging our reputation and generating profits through a short-term drive-down of our stock prices."
"Subsequently, despite a fully subscribed follow on public offering (FPO), we decided to return the money to investors to protect their interests. While we issued our rebuttal, various vested interests targeted us," Adani said.
Earlier in May, a court-appointed panel said capital markets regulator SEBI had "drawn a blank" in its investigations into suspected violations in overseas investments in the group and its ongoing pursuit of the case could be a "journey without a destination".
"While SEBI is still to submit its report, we remain confident of our governance and disclosure standards," the billionaire said. The regulator must complete its investigation by August 14.
The group is also building a hybrid renewables park capable of generating 20 gigawatts of green energy, Adani said on Tuesday. Further, he added that Adani Ports, in the next 12-24 months, will commission India’s largest transshipment hub.
Hindenburg released an explosive report in late January alleging accounting fraud and stock price manipulation at Adani Group, triggering a stock market rout that had erased about $145 billion in the conglomerate's market value at its lowest point.
However, the group has denied all allegations by the US-based short seller and is plotting a comeback strategy that includes recasting its ambitions, scrapping acquisitions, pre-paying debt to address concerns about its cash flows and borrowings, and scaling back its pace of spending on new projects.
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