Adani’s formal Hindenburg reply is now scheduled following the January 31 share sale

According to one of the sources, Adani Group has drafted a response of more than 100 pages and is seeking legal guidance on when to disclose it. While it would not be before January 31, the folks did not indicate when the response will be received.

According to persons acquainted with the situation, Adani Group will issue a full response to claims made by US short seller Hindenburg Research only after the completion of a fresh share sale on Jan. 31. According to bondholders who participated in a conference call with Adani officials, the company headed by Asia’s richest person, Gautam Adani, said it will provide a full reply on Friday. While it answered certain queries, the longer response did not appear as planned.

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One of the persons who asked not to be identified because the information is confidential said the group has written a response of more than 100 pages and is also seeking legal guidance on when to disclose it. While it would not be before January 31, the folks did not indicate when the response will be received. The conglomerate’s spokesman declined to respond.

Hindenburg’s report came only days before the billionaire’s flagship company, Adani Enterprises Ltd., announced India’s largest-ever primary follow-on public offering, aiming to raise 200 billion rupees ($2.5 billion). Its purpose was to fund capital expenditures and pay off the debts of its different components.

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Hindenburg said that its two-year investigation discovered the Adani Group “involved in a blatant stock manipulation and accounting fraud scheme over the course of decades,” and cited the conglomerate’s “significant debt.” The business stated that it is shorting Adani Group through US-traded bonds and non-Indian-traded derivatives, and that their research “only refers to the valuation of securities traded outside of India.”

According to the Bloomberg Billionaires Index, the group lost more than $50 billion in market value in two sessions, losing Adani more than $20 billion, or almost one-fifth of his overall fortune. Adani Group announced on Thursday that it was considering legal action against Hindenburg, calling the article “maliciously mischievous,” “bogus,” and “unresearched.”