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Adani strikes back at Hindenburg. But can he win the perception war?
Gautam Adani, the Indian tycoon under attack by a New York-based short-seller, has outdone his accuser 4:1: The rebuttal put out by his group Sunday night in India runs into 413 pages. Hindenburg Research’s allegations of stock-price manipulation and accounting fraud were contained in a 106-page report, which has now been denounced by the conglomerate as “nothing short of a calculated securities fraud under applicable law.” Is the response, backed by the claim that the group may pursue remedies, as weighty as it is voluminous? Perhaps it doesn’t really matter. That’s because the fate of Adani’s vast corporate empire will be decided by what sounds like a rounding error for one of the world’s wealthiest businessmen: In the ongoing 200 billion rupee ($2.5 billion) public offer by the group’s flagship, large anchor investors have already been allotted about 60 billion rupees of shares at the top end of the per-share price band of 3,112 rupees to 3,276 rupees. But following the Hindenburg report, the Adani Enterprises Ltd. stock nosedived by nearly 20% over two trading days last week and closed at slightly above 2,761 rupees on Friday. Source - Business Standard
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