Adani Group Evaluating Legal Action Against Hindenburg After Listed Shares Take Major Hit



Indian conglomerate Adani Group on Thursday said it is evaluating potential legal action against Hindenburg Research as its various listed companies continued to be hit by a market selloff, a day after the U.S.-based activist investment firm disclosed short positions against the group’s companies and accused the company’s founders of engaging in stock manipulation and fraud.

Key Facts

In an emailed statement, Adani Group Legal Head Jatin Jalundhwala said the company was “evaluating the relevant provisions” under both U.S. and Indian laws for “remedial and punitive action against Hindenburg Research.”

In the statement, the Adani Group again slammed Hindenburg Research’s report calling it “maliciously mischievous [and]

unresearched” and adding that it had adversely affected the company, its shareholders and investors.

The statement blamed Hinderburg’s report for creating volatility in the Indian stock markets adding that it “ has led to unwanted anguish for Indian citizens.”

Labeling Hindenburg as a “foreign entity” the statement accuses the investment firm of trying to mislead the public and sabotage its flagship entity Adani Enterprises’ Follow-on Public Offering which is set for Friday.

Forbes Valuation

According to our estimates Adani Group founder, Gautam Adani’s current net worth stands at $119.1 billion, down by more than $6.5 billion in the past 24 hours. On Wednesday, Adani ceded the number three spot on the world’s richest list to Amazon founder Jeff Bezos due to the sharp drop in his companies’ stocks.

This is a developing story.

Forbes Business
Read More