ACC on Hindenburg: ACC, a company belonging to the Adani Group, has stated that an independent law firm has reviewed all transactions mentioned in the report by short-seller Hindenburg. In January of this year, Hindenburg published a report questioning the group’s compliance with applicable laws and regulations. However, ACC has said that the law firm’s report confirms the company’s compliance with all applicable laws and regulations. ACC has also stated that since the matter is sub-judice, the financial statements do not carry any adjustments.
The Supreme Court has received a petition following the release of a report by a short-seller. To assess compliance with laws and regulations, the Securities and Exchange Board of India (SEBI) is conducting investigations into the group’s listed companies. The Adani Group has faced a bear attack with respect to its adherence to legalities and rules. The group has responded by implementing measures including selling stakes in various companies to prepay its debt and slowing down on expansion and new projects.
Despite the adverse outlook towards the group, the market capitalization of its companies has rebounded by a remarkable 47% since reaching its nadir at the end of February. This signifies that investors might place their trust in the steps taken by the group to confront compliance issues with laws and regulations.
The subject at hand is currently sub-judice, indicating that a court of law is currently examining the matter. It would therefore be inappropriate to make definitive statements regarding the veracity of the short-sellers accusations or the outcome of the case. The Adani Group and its entities have confirmed that they are providing full cooperation to the Securities and Exchange Board of India or SEBI’s inquiries and are confident in their ability to demonstrate compliance with relevant legislation and regulations.
To summarise, the Adani Group and its affiliated businesses are presently facing allegations of non-compliance with legal requirements, resulting in a bearish onslaught on their shares. Nevertheless, the Group has taken steps to deal with these concerns, and its firms’ market capitalization has rebounded since hitting its nadir. It should be emphasized that the matter is currently sub-judice, and the final verdict is still pending.
