The Adani Group, one of Asia’s largest conglomerates, has announced that it is considering taking legal action against US investment firm Hindenburg Research. This comes after Hindenburg published a report accusing the Adani Group of “brazen” market manipulation and accounting fraud.
In a statement, Jatin Jalundhwala, the legal head for the Adani Group, said that the company is currently evaluating the relevant provisions under both US and Indian laws in order to take remedial and punitive action against Hindenburg Research.
Jalundhwala also stated that the report, which he called “maliciously mischievous and unresearched,” has had a detrimental effect on the company, its shareholders and investors.
Furthermore, he expressed concern about the volatility in the Indian stock markets that has been caused by the report and the resulting unwanted anguish for Indian citizens.
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The report, which was published on January 24th, had an immediate impact on the stock market. Bonds and shares of Adani-related entities saw a significant drop, leading to a loss of $12 billion in market value for the tycoon’s empire by the end of trading on Wednesday.
Additionally, a number of dollar bonds for Adani Group companies experienced further falls on Thursday. Indian markets were closed on Thursday for a holiday.
This report from Hindenburg Research comes at a crucial time for the Adani Group, as the company’s owner, Gautam Adani, is currently trying to raise his international profile. He has been aggressively expanding the company’s business operations in India, where he has a close relationship with Prime Minister Narendra Modi, by branching into new areas such as cement and media.