Adani's nationalist rebuttal ignores accusations, says Hindenburg

An extensive rebuttal from Gautam Adani's self-named conglomerate of the US short seller's allegations of pervasive corporate wrongdoing, according to Hindenburg Research, overlooked all of its main allegations and was "obfuscated by nationalism."

The short seller claimed early on Monday in India that the detailed explanation released by the Adani Group late on Sunday failed to specifically address 62 of Hindenburg's 88 concerns and confused the company's "meteoric rise" and the wealth of Asia's richest man "with the success of India itself", Bloomberg has reported.

Adani tried to reassure investors while moving through with a $2.5 billion share sale, but the group's prices continued to decline on Monday. The ports-to-power company is trying to stop a decline that in two trading sessions last week destroyed more than $50 billion in market value.

The majority of the 88 queries posed by Hindenburg Research, according to Adani, have previously been answered in public disclosures. He also referred to the US company's actions as "nothing short of a premeditated securities fraud under the law." Additionally, a legal threat was reiterated.

These are the some of the key points raised by Hindenburg in its latest response:

• Fraud cannot be "obfuscated by nationalism or a bloated response" that ignores the main allegations raised
• Short seller categorically denied the securities fraud charge levied by the Adani Group
• Hindenburg disagrees with Adani combining its growth story with India's
  - "To be clear, we believe India is a vibrant democracy and an emerging superpower with an exciting future. We also believe India's future is being held back by the Adani Group, which has draped itself in the Indian flag while systematically looting the nation."
• Of the 413 page response, only 30 pages focused on issues related to the 24 January report
  - The questions that were answered either "largely confirmed or attempted to sidestep" the report's findings
  - Besides 330 pages of court records, 53 pages in Adani's response were "high-level financials, general information, and details on irrelevant corporate initiatives" like production of safe vegetables

Adani has attempted to characterise Hindenburg's accusations against his firm as an attack on his home country because he is viewed by critics as being close to India's Prime Minister Narendra Modi. The businessman frequently aligns his enterprises with Modi's development objectives by constructing capital-intensive infrastructure, such ports and airports.

"This is not merely an unwarranted attack on any specific company but a calculated attack on India, the independence, integrity and quality of Indian institutions, and the growth story and ambition of India," Adani said in its response Sunday.