Gautam Adani Responds to Allegations in the Hindenburg Report at the Adani AGM 2024

Gautam Adani addressed shareholders during the Adani Group’s Annual General Meeting (AGM) in 2024, vehemently denouncing the Hindenburg Research report that charged the conglomerate with financial malpractices. He said that the study was an intentional attempt to damage the group’s reputation and reduce its market value.

Adani stressed that the U.S. short seller’s charges were not only meant to generate financial advantages but also to initiate a two-pronged attack by casting doubt on the company’s financial integrity and fabricating material to incite political unrest. He emphasized how the report was issued just two days prior to the Follow-on Public Offer (FPO) closure, which led to the company’s decision to revoke its Rs 20,000 crore FPO even though it had received full subscriptions. Adani stated that this choice showed their dedication to ethical business practices and investors.

Adani emphasized in his speech the Adani Group’s tenacity in the face of adversity. He emphasized that the organization had successfully raised Rs 40,000 crore to increase their cash reserves, guaranteeing enough money to pay off debts over the following two years. He claimed that by taking this decisive action, the market had recovered and their portfolio was protected from volatility. To further enhance its financial position, the group pre-paid Rs 17,500 crore in margin-linked financing. Adani emphasized that the group’s debt to EBITDA ratio demonstrated its financial robustness and preparedness for future growth, as it was lowered from 2.5x to 2.2x in just six months.

Adani further stated that the company’s actions were vindicated by the Supreme Court’s affirmation of those acts. He pointed out that the Adani Group’s continuing investment by reputable international investors such as GQG Partners, TotalEnergies, IHC, QIA, and the US Development Finance Corporation validates their dedication to operational excellence and open disclosure.

When Adani looked back on the difficulties of the previous year, he said that the political charges and disinformation hurdles were timed to coincide with the FPO. Despite this, the group overcame the difficulties because of their commitment to their basic values—courage, trust, and commitment. Adani claimed that the decades-old foundations of the Adani Group were robust enough to repel such attacks.

There was a large sell-off in the conglomerate’s shares after the Hindenburg report accused the Adani Group of manipulating stock prices and inappropriately employing tax havens. Adani stressed, meanwhile, that the group’s strategic moves and liquidity not only offset the short-term financial effects but also set them poised for long-term expansion.

Adani restated the group’s steadfast commitment to upholding the interests and confidence of its investors. He said that the group’s ability to generate significant funds and pay off debt demonstrated their strength and endurance, and he lauded their liquidity management as a crucial asset amid difficult circumstances.

In conclusion, despite confronting previously unheard-of obstacles, Gautam Adani’s speech at the AGM helped to reassure shareholders about the company’s strong financial health and dedication to moral business practises. He confirmed that the Adani Group is better prepared for future expansion and success, having grown stronger and more resilient.