Adani Group
Adani Group to sue USA's Hindenburg Research for 'malafide, mischievous' report
Mumbai/IBNS: The Adani Group is planning to take US-based investment research firm Hindenburg Research to court for a "malafide and mischievous" report published before the Indian firm’s Rs 20,000 crore follow-on public offer (FPO) pulled down Adani Group stocks by up to 10% on Wednesday.
"We are evaluating the relevant provisions under US and Indian laws for remedial and punitive action against Hindenburg Research," the group said in a statement.
The "maliciously mischievous, unresearched" report affected the Adani Group, 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. 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," said Jatin Jalundhwala, Adani Group Head, Legal.
Hindenburg’s report said the firm holds short positions in Adani Group companies through US-traded bonds and non-Indian-traded derivatives, along with other non-Indian-traded reference securities.
"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," said the Adani statement.
On Wednesday, Adani Enterprises raised Rs 5,985 crore by allotting shares to anchor investors ahead of the follow-on public offer (FPO).
The anchor book for Adani Enterprises Ltd. was oversubscribed by 1.8-2 times, Bloomberg had reported.
The Adani Group’s flagship company allotted 1,82,68,925 shares to over 30 institutional investors at Rs 3,276 a share, the upper end of the FPO price band of Rs 3,112-3,276 a share.
Abu Dhabi Investment Authority (ADIA), Maybank Asia, Goldman Sachs, Nomura Financial, Societe Generale, Jupiter, BNP Paribas, Al Mehwar, Citigroup, and Morgan Stanley have been allotted the stocks.
LIC, which already holds a 4.2 percent stake, was allotted 9,15,748 shares or 5% of the total anchor portion.
Bids for smaller potential investors will be open from Jan 27 to Jan 31.
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.
Support objective journalism for a small contribution.
