‘We safeguarded our portfolio against any volatility by pre-paying Rs 17,500 crore in margin-linked financing,’ says Gautam Adani
Adani Group Chairman Gautam Adani delved on the Hindenburg incident at the 32nd annual general meeting of the conglomerate and cited the short-seller’s over 100 pages long report on the group as “baseless accusations”.
“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. The attack was a calculated strike two days before the closing of our Follow-on Public Offer,” said Adani about the US short seller’s scathing report against the conglomerate last year.
Hindenburg fiasco
Hindenburg, in a report, accused the group of stock manipulation and improper use of tax havens triggering a sell-off in Gautam Adani’s ports-to-power conglomerate.
Later, an expert panel, established by the Supreme Court, found no conclusive evidence of stock manipulation by the Adani Group, though it recommended improvements to the regulatory framework to protect investors.
“Amplified by a segment of vested media, it was designed to defame us, do maximum damage and erode our hard-earned market value,” Adani added.
He further reiterated the group’s efforts to navigate the crisis and said that the company raised an additional Rs 40,000 crore, covering the next two years of its debt repayment.
“We safeguarded our portfolio against any volatility by pre-paying Rs 17,500 crore in margin-linked financing,” said Adani in his speech at the AGM.
Bullish on India
The group is optimistic on the domestic growth and is eyeing higher growth opportunities from government’s infrastructure push.
“Given the multiplier effect, the government of India has rightly focused on infrastructure development by raising its funding by 16% to over Rs 11 lakh crore for this financial year. It is worthwhile to note that annual spending has tripled in the last 5 years,” Adani further said.
He stressed on the role of state governments in implementing the initiatives related to infrastructure development.
“With the government now in its third term, your company is well positioned to continue the economic and social programs,” he added.