India’s Adani Group Says Evaluating Action Against Hindenburg Research

BENGALURU (Reuters) -Adani Group said on Thursday it is evaluating taking “remedial and punitive action” under U.S. and Indian laws against short-seller Hindenburg Research, which in a report accused the conglomerate of improper use of offshore tax havens.

“The maliciously mischievous, unresearched report published by Hindenburg Research on 24 Jan 2023 has adversely affected the Adani Group, our shareholders and investors,” Adani Group Head – Legal, Jatin Jalundhwala, said in a statement.

The report by Hindenburg, which said it held short positions in the conglomerate, led to seven listed group companies of Adani losing $10.73 billion in market capitalisation on Wednesday. Indian markets are closed on Thursday for a public holiday.

The group, which is led by Gautam Adani, the world’s third richest person according to Forbes, dismissed the U.S. short-seller’s claims on Wednesday as baseless, saying it was timed to damage its reputation ahead of a large share offering.

Hindenburg did not respond immediately to a request for comment outside regular U.S. business hours.

Adani’s secondary share sale saw participation from Maybank Securities and Abu Dhabi Investment Authority among others.

(Reporting by Anuran Sadhu in Bengaluru; Editing by Muralikumar Anantharaman)