June 24, 2024 in Indian Business News

Gautam Adani takes a dig at Hindenburg report at Adani Group AGM; says short-seller attack was designed to defame group

Adani Group Chairman, Gautam Adani, has hit out about the controversy sparked by the US-based short-seller Hindenburg Research in January 2023, which plunged the company into significant turmoil due to allegations of corporate governance lapses. At the time as well, Adani had refuted all the accusations.
According to an ET report, at Adani Enterprises’ Annual General Meeting on Monday, Gautam Adani said, “Typical short sellers target gains from financial markets.This was different. It was a two-sided attack – a vague criticism of our financial standing and, at the same time, an information distortion campaign, dragging us into a political battlefield.”
Adani claimed that the short-seller attack was designed to defame group, do maximum damage. He also said that the headwinds that tested the Adani Group made it stronger.
With the National Democratic Alliance, led by Narendra Modi, securing power for a third consecutive term, the Adani Group is well-equipped to further the economic and social initiatives that have fueled its remarkable progress over the past ten years, Gautam Adani said at the AGM, according to the ET report.
Adani asserted, “India is no longer at the crossroads of destiny – we stand on the brink of our greatest growth phase. By the end of this decade, our nation is set to become the world’s third-largest economy.” He further added, “Given our demographic dividend, we are well on our way to being the largest middle class that the world will ever witness.”
Adani also said, “Despite never having faced any challenges with debt repayments, we chose to drop our Debt to EBITDA ratio to 2.5x in just six months. It now stands even lower at 2.2x. This approach has not only strengthened our financial resilience but has also increased our headroom for future expansion.”

Adani Group AGM: Top 10 Takeaways

  1. Gautam Adani claimed that amplified by a segment of biased media, Hindenburg’s allegations were intended to tarnish the group’sreputation, inflict maximum harm, and undermine its market value.
  2. In a scenario where many companies would have faltered, Adani said that the group’s liquidity proved to be its strongest asset. To further strengthen financial reserves, Adani group secured an additional Rs 40,000 crore, ensuring it can comfortably manage debt repayments for the next two years.
  3. Envision the massive redevelopment project in Mumbai’s Dharavi as the group transforms the world’s largest slum over the next decade, providing improved living conditions for over one million residents.
  4. We achieved our highest EBITDA of Rs 82,917 crore (approximately $10 billion), reflecting an impressive 45% increase, he said. This outstanding performance propelled the PAT to a record Rs 40,129 crore, a significant 71% growth.
  5. Three of the group’s portfolio companies—Ambuja, ACC, and APSEZ—have now achieved AAA ratings.
  6. India is no longer at a crossroads; we are on the verge of entering our greatest growth phase, he said.
  7. With our demographic advantage, we are well on our way to becoming the largest middle class the world has ever seen, Adani added.
  8. The foundation for growth is firmly established, and the next decade promises even greater advancements.
  9. Our infrastructure spending is projected to grow at a CAGR of 20-25%, reaching a cumulative total of $2.5 trillion, he said.
  10. The foundation for growth is firmly established, and the next decade promises even greater advancements, he claimed.

Republished. Link to Original Article: https://timesofindia.indiatimes.com/business/india-business/gautam-adani-takes-a-dig-at-hindenburg-report-at-adani-group-agm-says-short-seller-attack-was-designed-to-defame-group/articleshow/111226224.cms

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