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Indian Supreme Court finds Hindenburg allegations against Adani to be false

22 May 2023

Bravus’ parent company the Adani Group has welcomed the Indian Supreme Court’s findings of “no regulatory failure” and “no evident pattern of manipulation” following expert investigation of stock manipulation and financial fraud allegations levelled at the Group by USA-based short sellers Hindenburg Research.

Indian stock market regulator the Securities and Exchange Board of India (SEBI) likewise told the Court it had "drawn a blank" in its probe into alleged violations in money flows from offshore entities into the Adani Group.

Both independent investigations were triggered after Hindenburg Research published a report on 24 January 2023 that used selective misinformation and discredited allegations to purposefully undermine the reputation of the Adani Group and profit by short-selling shares in Adani Group companies.

The Group has vehemently denied the allegations.

The findings of the expert six-member Committee appointed by the Supreme Court were made public late on Friday 19 May (Indian Standard Time) and state the “allegations of stock price manipulations or violation of Minimum Public Shareholding norms by Adani group companies cannot be proved at this stage.”

“At this stage, taking into account explanations provided by SEBI (and) supported by empirical data, prima facie it would not be possible for the Committee to conclude there was a regulatory failure around the allegation of price manipulation," the Committee said in its report.

The Committee’s report also categorically stated that short selling activity took place before the release of Hindenburg’s report, with evidence of a build-up in short positions and profiting from squaring off positions after prices crashed post-publication of Hindenburg’s disproved allegations.

Bravus is pleased the Committee’s findings confirm the Adani Group’s public position that the Hindenburg Research allegations were not only false and baseless, but were also motivated.

All of Bravus’ businesses are Australian companies that comply with Australian corporations and securities legislation.

None of our businesses have been contacted by the Australian Securities and Investments Commission or the Australian Tax Office about any of the allegations in the Hindenburg Report.

It remains business as usual at our port, rail, and mine operations, which are exporting Australian coal, mined at the Carmichael mine and by our customers in the Bowen Basin, to the world.

Our Australian operations support a sustainable and affordable energy mix that helps lift global populations out of poverty, while prioritising local jobs and community benefits at home.

As a group of companies, Adani is the world’s largest solar company and is investing heavily in research and development of other alternative generation sources.


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