https://sputniknews.in/20230410/adani-group-slams-financial-times-for-inciting-misunderstanding-in-indian-market-1491790.html
Adani Group Slams Financial Times For Inciting ‘Misunderstanding’ in Indian Market
Adani Group Slams Financial Times For Inciting ‘Misunderstanding’ in Indian Market
Sputnik India
Indian billionaire conglomerate Adani Enterprises on Monday slammed British publication The Financial Times for an article claiming that the group relied on funding from offshore companies.
2023-04-10T17:34+0530
2023-04-10T17:34+0530
2023-04-10T17:34+0530
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Indian billionaire conglomerate Adani Enterprises on Monday slammed British publication The Financial Times for an article claiming that the group relied on funding from offshore companies to meet a sizeable portion of its funding needs between 2017 and 2022.The Adani Group said that the news report “contained fundamental misunderstandings of prior Adani Group disclosures” and has created a “misunderstanding” in the Indian market”, as per a letter written to Financial Times.Adani Enterprises has diversified interests in ports, airports, renewable and non-renewable energy and cement businesses.It said that the report titled ‘Indian Data Reveals Adani Empire's Reliance on Offshore Funding’ was a “mendacious, deliberate effort to attempt to paint the Adani family and the Adani Group in the worst possible light”.The contentious report claims that offshore companies linked to the Adani Group promoters invested $2.6 billion through the Foreign Direct Investment (FDI) route between 2017 and 2022. The report alleged that the amount was over 45 per cent of the overall FDI received by the Adani firms during the same period.Under the Indian financial security laws, such transactions must be made public through regulatory filings and must be vetted by the shareholders. A company found guilty of violating these terms are liable to a penalty.The Adani Group said that it has already “publicly disclosed” these transactions through public disclosures between 2019 and 2021, as mandated in Indian law.The Indian conglomerate said that the article “incorrectly mixed primary and secondary investments, and also ignored entirely a secondary transaction of $2 billion” to create an “illusion” about a gap in funding, which didn’t exist at all.Hindenburg Allegations Against AdaniIn January, a report by US-based short-seller Hindenburg Research accused the Adani firms of raising debt through manipulating their stock market prices by sourcing funding from offshore entities linked to the group’s promoters. The report led to one of the biggest stock market routs in Indian corporate history, as companies linked to the conglomerate lost over $2 billion in market capitalization.The Adani Group has firmly rejected these allegations, terming them a “malicious combination of selective misinformation and stale, baseless and discredited allegations that have been tested and rejected by India’s highest courts.”Moreover, the Indian conglomerate has taken a series of steps to win back investor confidence in the wake of the Hindenburg report, including pre-paying its share-backed loans to foreign and Indian investors.
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Adani Group Slams Financial Times For Inciting ‘Misunderstanding’ in Indian Market
The Financial Times report has become a “political issue”, forcing the Adani Group’s hand to make the letter public, the conglomerate says.
Indian billionaire conglomerate Adani Enterprises on Monday slammed British publication The Financial Times for an article claiming that the group relied on funding from offshore companies to meet a sizeable portion of its funding needs between 2017 and 2022.
The Adani Group said that the news report “contained fundamental misunderstandings of prior Adani Group disclosures” and has created a “misunderstanding” in the Indian market”, as per a letter written to Financial Times.
Adani Enterprises has diversified interests in ports, airports, renewable and non-renewable energy and cement businesses.
“We understand the competitive race to tear down Adani can be alluring…the creation of a misleading narrative, your story has created reputational impact on Adani Group companies. We ask you to take down the story immediately from your website,” it said.
It said that the report titled ‘Indian Data Reveals Adani Empire's Reliance on Offshore Funding’ was a “mendacious, deliberate effort to attempt to paint the Adani family and the Adani Group in the worst possible light”.
The contentious report claims that offshore companies linked to the Adani Group promoters invested $2.6 billion through the Foreign Direct Investment (FDI) route between 2017 and 2022. The report alleged that the amount was over 45 per cent of the overall FDI received by the Adani firms during the same period.
Under the Indian financial security laws, such transactions must be made public through regulatory filings and must be vetted by the shareholders. A company found guilty of violating these terms are liable to a penalty.
The Adani Group said that it has already “publicly disclosed” these transactions through public disclosures between 2019 and 2021, as mandated in Indian law.
“If your reporters had fully taken into account all of those filings and other disclosures, they would have been simply unable to include – with any honesty – their subjective epithets about ‘hard-to-scrutinize money flows’, ‘opaque overseas investments’ and ‘funds of unclear provenance’,” the Indian conglomerate said, referring to phrases used in the report.
The Indian conglomerate said that the article “incorrectly mixed primary and secondary investments, and also ignored entirely a secondary transaction of $2 billion” to create an “illusion” about a gap in funding, which didn’t exist at all.
Hindenburg Allegations Against Adani
In January, a report by US-based short-seller Hindenburg Research
accused the Adani firms of raising debt through manipulating their stock market prices by sourcing funding from offshore entities linked to the group’s promoters.
The report led to one of the biggest stock market routs in Indian corporate history, as companies linked to the conglomerate lost over $2 billion in market capitalization.
The Adani Group has firmly rejected these allegations, terming them a “malicious combination of selective misinformation and stale, baseless and discredited allegations that have been tested and rejected by India’s highest courts.”
“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 a 413-page response rejecting the fraud allegations.
Moreover, the Indian conglomerate has taken a series of steps to win back investor confidence in the wake of the Hindenburg report, including pre-paying its share-backed loans to foreign and Indian investors.
