In a strongly-worded letter to shareholders, Adani Group chairman Gautam Adani on Wednesday described the market regulator SEBI's dismissal of key allegations from the Hindenburg Research report as a "powerful validation" of the conglomerate's governance and transparency, and declared that "truth has prevailed".
More than two years after the damning short-seller report triggered a $150 billion selloff in group stocks, Adani said the Securities and Exchange Board of India's (SEBI) dismissal of allegations marked the end of a prolonged scrutiny period that tested "every dimension" of the group's resilience.
Referring to the January 2023 Hindenburg Research report as a moment that shook India's markets, he said the attack was not just on the Adani Group but "a direct challenge to the audacity of Indian enterprises to dream on a global scale." Last week, SEBI cleared the Adani Group of allegations following the now-defunct Hindenburg Research's market manipulation claims first made in January 2023.
The market regulator said it had concluded that fraud accusations by Hindenburg concerning related-party transactions by Adani were "not established". The short-seller had said that funds were improperly channelled into multiple Adani companies.
SEBI said there had been "no violation" by the Adani Group, which has extensive operations across ports, coal, renewable energy, media and airports.
"What was meant to weaken us has instead strengthened the very core of our foundations," Adani wrote. "This moment is more than a regulatory clearance, it is a powerful validation of the transparency, governance and purpose with which your company has always operated." Since the Hindenburg report, the group has rebounded operationally, if not fully in market capitalization. Adani reported a 57% jump in portfolio EBITDA over two years to Rs 89,806 crore ($10.8 billion) and a 48% expansion in gross block assets to Rs 6.1 lakh crore.
He listed major infrastructure milestones over the past two years.
These include commissioning of India's first container transshipment port at Vizhinjam, Kerala; addition of 6 GW renewable capacity, led by the Khavda project - billed as the world's largest single-location renewable site; commissioning of the world's largest copper smelter and metallurgical complex, and addition of 4GW of new thermal capacity and 7,000 circuit km of transmission lines across the country and overseas.
Adani said the group will now focus on strengthening governance, accelerating innovation, and deepening infrastructure investments.
"We will double down on nation building," he said, while acknowledging the anxiety faced by investors, lenders and partners during the crisis.
Looking forward, he pledged to strengthen governance, accelerate innovation and sustainability, and deepen investments in national infrastructure.
He concluded with a call to reaffirm the company's core values - "resilience in adversity, integrity in action, and an unyielding commitment to building a brighter future for India and the world." The letter ended with a quote from poet Sohan Lal Dwivedi, likening the group's recovery to a boat that braves waves to reach the shore.
"The boat that fears the waves can never reach the shore, But those who keep on trying will win forevermore...," he quoted, urging continued boldness and perseverance.
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