‘Adani Group confident of its governance and disclosure standards’ – ET Infra

The Adani group is confident of its governance and disclosure standards and will strive to improve those further, chairman Gautam Adani said on Tuesday and claimed that Hindenburg Research’s report against it was a combination of “targeted misinformation” and “discredited allegations”.

“An expert committee set up by the Supreme Court of India to probe into these allegations did not find any regulatory failure, or any instance of breach,” Adani told shareholders of Adani Enterprises (AEL) at its annual general meeting (AGM) where he also stressed the group’s focus on “producing the lowest-cost green electron at scale”.

The Securities and Exchange Board of India (Sebi) is yet to submit its report on the matter, he said.

The top court has given the market regulator time till August 14 to complete its probe into allegations of stock price manipulation.

“We remain confident of our governance and disclosure standards,” Adani said. “It is my commitment that we will continue to strive to keep improving these, every single day.”

In January this year, the US-based short seller Hindenburg had published a report accusing Adani group of several accounting frauds and manipulation of share prices between 2004 to 2015. This led to a slump in Adani companies’ stocks, and shaved off about $145 billion from the conglomerate’s market value.

Following the report, Adani Enterprises withdrew its ₹20,000-crore follow-on public offer, which would have been the country’s largest.

“This report was a deliberate and malicious attempt aimed at damaging our reputation and generating profits through a short-term drive-down of our stock prices,” Adani said. Sebi, meanwhile, has told its officials that they could face “appropriate action” for divulging confidential information to “outsiders”, including former colleagues.

Adani pointed out that despite the crisis, not only was the group able to raise funds from international investors, but agencies also did not cut ratings. “This is the strongest validation of the belief that the investors have in your company’s governance and capital allocation practices,” he said. Adani group has presence in ports, power, energy, airports, cement, and the fast-moving consumer goods space, among others.

It has the largest operational renewable energy portfolio in the country, which grew 49% last fiscal year to over 8 gigawatt (GW).

“Our focus remains on producing the lowest-cost green electron at scale – and I would like to reaffirm our target of 45 GW of renewable energy capacity by 2030,” Adani said.

Adani Green Energy is building the world’s largest hybrid renewables park in Khavda. “It will be the most complex and ambitious project that we have ever executed,” Adani said. “We intend to build it faster than any project in our execution history.”

While speaking about the growth potential of the country, Adani listed out various projects underway at the group, including the Navi Mumbai airport and a copper smelter. “Our country is now the most exciting land of opportunities. Your group will continue to consolidate what it has built while looking at expanding its horizons,” he said.

Total income of the Adani group of companies surged by 85% year on year at ₹2,62,499 crore for 2022-23, while profit jumped by 82% to ₹23,509 crore.

  • Published On Jul 19, 2023 at 04:13 PM IST

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