Adani Annual General Meeting 2024: “The aim is to defame us, harm us and undermine our hard-earned market value,” says Gautam Adani on the Hindenburg report

Adani Annual General Meeting 2024: Gautam Adani, in his address to shareholders during the Adani Group Annual General Meeting 2024 on Monday, said that foreign short-seller Hindenburg Research’s damning report on the conglomerate was published with an aim to defame it and undermine the group’s hard-earned market value. He said that despite this, the group continues to exist. He stressed that the group has raised Rs 40,000 crore despite the Hindenburg report and its aftermath.

“We were faced with baseless accusations from a foreign short seller who questioned our decades of hard work. In the face of an unprecedented attack on our integrity and reputation, we fought back and proved that no challenge can weaken the foundations on which our group is built. These foundations are our three core values ​​- courage to resist, confidence in our abilities and commitment to our purpose. These values ​​were established in 2012 – and have become more relevant with each passing year,” he explained.

Commenting on Hindenburg’s report, Adani said: “Normal short sellers aim to make profits in the financial markets. This was different. It was an attack from two sides – a vague criticism of our financial position and at the same time an information distortion campaign that dragged us into a political battlefield. The attack was a calculated strike two days before the completion of our follow-on offer. Amplified by a section of the media with vested interests, it was designed to defame us, cause maximum damage and undermine our hard-earned market value.”

Adani Enterprises decided to unexpectedly call off its Rs 20,000 crore FPO a day after successfully completing the offer. This happened after the company’s shares plummeted due to the Hindenburg report. The company returned the money raised from investors in the FPO.

Adani said in his speech that the decision to return the money was a testament to their commitment to their investors and their dedication to ethical business practices. He said most companies would have gone under in such difficult times, but their liquidity has become their biggest asset.

“To further bolster our cash reserves, we have raised another Rs 40,000 crore, which will comfortably cover the next two years of our debt repayments. This decisive action is a testament to the great strength of your company. It has restored market confidence – and we have hedged our portfolio against any volatility by repaying Rs 17,500 crore upfront in the form of margin-linked financing,” he said.

The conglomerate’s billionaire founder said that despite never having any problems paying down debt, the company decided to reduce its debt-to-EBITDA ratio to 2.5x in just 6 months. “It is now even lower at 2.2x. This approach has not only strengthened our financial resilience but also increased our scope for future expansion,” he told shareholders.

The Supreme Court has upheld the company’s actions, he said, further justifying them. “In addition, our commitment to operational excellence and transparent disclosures has been validated not only by rating agencies and the well-informed financial community, but also by respected global investors such as GQG Partners, TotalEnergies, IHC, QIA and the US Development Finance Corporation – all of whom have chosen to invest in us. The headwinds that tested us were precisely those that made us even stronger,” he said.