Adani Enterprises Annual Report Highlights Supreme Court Panel’s Positive Findings
Five months following the bombshell short seller report that caused significant market value losses for his conglomerate, Gautam Adani, chairman of the Adani Group, has reiterated his confidence in the group’s governance and disclosure standards. In the annual report of Adani Enterprises Ltd, the flagship firm of the group, Adani emphasized that a panel of experts appointed by the Supreme Court found no regulatory failure within the conglomerate.
Hindenburg Research, a US-based short seller, had levied accusations of “brazen stock manipulation and accounting fraud” against Adani on January 24, along with allegations of surreptitious money movements through a network of shell companies. The Adani Group vehemently denied these allegations, dismissing the report as a “calculated attack on India.”
Adani revealed in the annual report that the short seller published their report “on the event of our Republic Day.” At its lowest point, the report resulted in a staggering loss of nearly USD 150 billion in market value for the group’s listed companies, causing Gautam Adani to lose his status as the richest Indian.
Adani described the report as a combination of “targeted misinformation and outdated, discredited allegations” designed to damage the group’s reputation and drive down stock prices. Despite issuing a comprehensive rebuttal promptly, various vested interests seized the opportunity to propagate false narratives through different media platforms, exacerbating the consequences of the short-selling incident.
Adani then referred to the Supreme Court-appointed expert committee, composed of individuals known for their independence and integrity, which was tasked with investigating the matter. The committee’s report not only acknowledged the mitigating measures implemented by Adani Enterprises, which helped restore confidence, but also recognized credible charges of concerted destabilization of the Indian markets. Additionally, the panel confirmed the quality of the group’s disclosures, finding no instance of regulatory failure or breach.
While the Securities and Exchange Board of India (SEBI) is yet to submit its report on a separate probe into the allegations against the Adani Group in the coming months, Gautam Adani expressed his continued confidence in the group’s governance and disclosure standards.
Addressing recent speculation regarding subpoenas to US investors by American authorities following the Hindenburg allegations, a late evening statement from Adani Group clarified that the company was unaware of any such subpoenas. It emphasized that all of its disclosures were a matter of public record and that regulatory access to public material was routine.
The statement reiterated that Adani Group and its portfolio companies operated in accordance with the regulations and accounting standards of the jurisdictions in which they operated. The Supreme Court-appointed expert committee’s findings highlighted the group’s mitigation measures, including debt reduction and fresh infusion, which contributed to increased investor confidence. SEBI’s queries were being addressed by Adani portfolio entities, and the statement urged against speculation, urging patience for the completion of SEBI and Supreme Court’s work and their subsequent findings.
Adani Group’s robust corporate governance framework and unwavering commitment to adhering to applicable laws and regulations were underscored in the statement. The group’s portfolio companies, including AGEL, ATL, APSEZ, and AEL, issued global capital market papers, with APSEZ being the sole corporate issuer. The majority of bond issuances by Adani Portfolio Companies fell under the Regulation S, 144A, and Regulation D categories, with nearly all non-Regulation D bonds listed on SGX and/or India INX.
The bonds were raised under the guidelines of the Reserve Bank of India for External Commercial Borrowings (ECB), taking the form of Non-Convertible Debentures. These bonds adherGautam Adani stands strong as Supreme Court panel validates governance standards. SEBI report pending.Gautam Adani stands strong as Supreme Court panel validates governance standards. SEBI report pending.Gautam Adani stands strong as Supreme Court panel validates governance standards. SEBI report pending.Gautam Adani stands strong as Supreme Court panel validates governance standards. SEBI report pending.
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