Adani says examining legal options against Hindenburg
NEW DELHI(PTI): A day after Adani Group's shares took a beating as Hindenburg Research made damaging allegations against it, the group on Thursday said it is examining legal options to take "punitive action" against the US activist investor for its "reckless" attempt to sabotage a share-sale at the conglomerate's flagship firm. "The maliciously mischievous, unresearched report published by Hindenburg Research on January 24, 2023 has adversely affected the Adani Group, our 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," the group's lead head Jatin Jalundhwala said in a statement.
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 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," he said.
"We are evaluating the relevant provisions under US and Indian laws for remedial and punitive action against Hindenburg Research."
The statement however did not say if the group is planning to sue Hindenburg.
Hindenburg, a US-based investment research firm that specialises in activist short-selling, said on Wednesday that its two-year investigation revealed that Adani Group has "engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades."
The report came just as a Rs 20,000 crore follow-on share sale of Adani Enterprises opened for institutional investors. All the listed stocks of the group took a beating after the report.
Adani Enterprises closed 1.54 per cent lower on Wednesday while Adani Ports & SEZ ended 6.3 per cent down.
After the report came out, Adani Group had stated that it was shocked to see the report that was published without any attempt to contact it to get the factual matrix.
"The report is a malicious combination of selective misinformation and stale, baseless and discredited allegations that have been tested and rejected by India's highest courts," the ports-to-energy conglomerate had said in a statement.
It had gone on to question the timing of the report, saying its publication ahead of the FPO "clearly betrays a brazen, malafide intention to undermine Adani Group's reputation with the principal objective of damaging" the issue.
"Gautam Adani, founder and chairman of Adani Group, has amassed a net worth of roughly USD 120 billion, adding over USD 100 billion in the past 3 years largely through stock price appreciation in the group's seven key listed companies, which have spiked an average of 819 per cent in that period," the US researcher's report had said.
The Hindenburg's report details a web of Adani-family controlled offshore shell entities in tax havens spanning the Caribbean and Mauritius to the United Arab Emirates, which it claims were used to facilitate corruption, money laundering and taxpayer theft, while siphoning off money from the group's listed companies.
"Our research involved speaking with dozens of individuals, including former senior executives of Adani Group, reviewing thousands of documents, and conducting diligence site visits in almost half a dozen countries," it said. Hindenburg claimed to have uncovered "rudimentary efforts seemingly designed to mask the nature of some of the shell entities."
"Even if you ignore the findings of our investigation and take the financials of Adani Group at face value, its 7 key listed companies have 85 per cent downside purely on a fundamental basis owing to sky-high valuations," the report said adding key listed Adani companies have also taken on substantial debt, including pledging shares of their inflated stock for loans, putting the entire group on precarious financial footing.
Adani Group has repeatedly dismissed debt concerns. Its Chief Financial Officer Jugeshinder Singh on January 21 on a media call stated that "Nobody has raised debt concerns to us. No single investor has."
"The investor community has always reposed faith in Adani Group on the basis of detailed analysis and reports prepared by financial experts and leading national and international credit rating agencies," the group said on Wednesday.
"Our informed and knowledgeable investors are not influenced by one-sided, motivated and unsubstantiated reports with vested interests."
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Congress Corporator's daughter stabbed to death inside college campus in Hubballi
Hubballi (Karnataka), Apr 18: The daughter of a Congress Corporator was stabbed to death by her acquaintance inside BVB college campus here on Thursday after she allegedly rejected his proposal, police said.
The deceased Neha (23), the daughter of Niranjan Hiremath, was a first-year MCA student, they said.
The accused 23-year-old Fayaz, an MCA dropout, has been arrested in connection with the incident, police said, adding that both of them were batchmates during their BCA course.
The entire incident was caught on CCTV camera.
According to the police, Fayaz went inside the college campus with a knife and stabbed Neha five-six times. During the attack, he too sustained injuries and was shifted to the hospital along with the victim. At the hospital, Neha was declared brought dead.
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"During interrogation, he (Fayaz) claimed that the two of them had been in a relationship and that she had suddenly started avoiding him. It needs to be corroborated and verified, but he was arrested immediately," a senior police officer said.
A case of murder has been registered, police said, adding that further investigation is underway.
Narrating about the incident, Neha's father Hiremath said that his daughter had classes from 8 am. At around 4.30 pm, when she stepped out after completing her classes, this person approached towards her and stabbed her nearly six times inside the college campus and she died on the spot.
"He (the accused) was an old student and he had proposed my daughter but she rejected his proposal. She did not like him and she usually stayed away from all this...She refused him saying they both belonged to different caste and that she did not wish to have any relationship with him. Out of anger, he stabbed my daughter," he told PTI videos.
Demanding justice for her daughter, he said that the accused should he hanged to death only then will his daughter's soul rest in peace.
Meanwhile, Karnataka Chief Minister Siddaramaiah condemned the incident and offered condolences to the family of the deceased.
"An accused has already been arrested in connection with the incident and I have instructed the Director General of Police to conduct a strict investigation and take action to ensure maximum punishment for the accused," he said in a post on 'X'.
He also appealed to people to not take law into their hands.
"In connection with the incident, no one should get agitated and take law into their hands or attempt to disturb peace of the society. It is our duty to get justice for the death of the young woman, in this regard the police department will work hard," he added.
