During the Annual General Meeting of Adani Enterprises on Monday, Gautam Adani addressed the Hindenburg report allegations, calling them baseless and designed to harm the company’s reputation.
Baseless Accusations
“We faced baseless accusations from a foreign short seller that undermined our decades of hard work,” said Adani, without naming Hindenburg directly. He explained that while typical short sellers aim to profit from market fluctuations, this case was different. “This was a two-sided attack based on vague criticisms of our financial standing,” Adani added.
Political Battle
Adani claimed the accusations were a calculated strike timed to occur just two days before the closing of their follow-on public offer. “It was amplified by a segment of the media with vested interests, designed to defame us, do maximum damage, and erode our hard-earned market share,” he said.
Hindenburg Report Allegations
The Hindenburg report had alleged that Adani used tax havens and raised concerns about the company’s debt, accusing it of stock manipulation. The Adani group dismissed the report as baseless and termed the allegations as “unsubstantiated speculations.”
Financial Performance
Adani Enterprises reported its highest ever EBITDA of ₹82,917 crore in FY24, a 45% increase. The profit after tax was a record ₹40,129 crore, with a cash balance of ₹59,791 crore. Adani highlighted that their liquidity improved significantly after the Hindenburg case, raising ₹40,000 crore to cover debt repayments for two years. He noted that their debt to EBITDA ratio had decreased to less than 2.2 times, indicating a strong ability to finance their debt. An ideal ratio for a company is considered to be less than 3 times.
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