Hindenburg report timed to disrupt FPO, company growth strong: Gautam Adani

Addressing an annual general meeting with shareholders, Adani Group chairman Gautam Adani pointed out that certain sections of the media played a role in amplifying the attack

Adani Group Chairman Gautam Adani, at the 32nd annual general meeting (AGM) with shareholders on Monday, discussed the Hindenburg saga, calling it a ‘designed attack’ aimed at disrupting the company’s follow-on public offer (FPO).

"It was designed to defame us. It was a two-sided attack, a vague criticism of our financial standing," said Adani about the US short seller's scathing report against the conglomerate last year.

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.

Addressing the short-seller attack, Adani described it as a coordinated effort involving distortion of information and political allegations. According to Adani, the timing of the attack was strategically aimed to coincide with a follow-on public offer (FPO), suggesting a deliberate attempt to disrupt the market.

He also pointed out that certain sections of the media played a role in amplifying the attack, which he believes was orchestrated to damage his reputation and erode the market value of his companies. Adani characterised the incident as a targeted effort designed for maximum defamation and financial harm.

"We safeguarded our portfolio against any volatility by pre-paying Rs 17,500 crore in margin-linked financing," said Adani.

Talking about the much-discussed FPO, Adani highlighted that the company maintained “ethical” practices by returning the money of investors.

“Despite successfully raising Rs 20,000 crore through India’s largest ever FPO, we made the extraordinary decision to return the proceeds. This underscored our dedication to investors and our commitment to ethical business practices,” he said.

Noting that the post-Hindenburg effect would have rendered many companies unable to recover, Adani Enterprises survived through high liquidity. “Where most companies would have gone under, our liquidity became our greatest asset. To further augment our cash reserves, we raised an additional Rs 40,000 crore, comfortably covering our next two years,” he added.

Adani Group records highest Ebitda in FY24

In FY24, Gautam Adani reported robust financial performance for the Adani Group's infrastructure platform, highlighted by a record Ebitda of Rs 82,917 crore, marking a significant 45 per cent increase. Profit after tax also reached an all-time high at Rs 40,129 crore, up by 71 per cent from the previous year. The group's financial health showed improvement as well, with the net debt-to-Ebitda ratio dropping to 2.2x from 3.3x over the past year.

Furthermore, the Adani Group's liquidity position strengthened notably, evidenced by a record cash balance of Rs 59,791 crore, he informed the shareholders. These solid financial metrics underscored a stable infrastructure platform, prompting a series of upgrades in ratings and outlooks. Notably, Ambuja, ACC, and Adani Ports & SEZ now hold AAA ratings, reflecting their strong financial standings and market confidence, Adani added.

Adani Group companies capacity expansion

Talking about its group companies, Gautam Adani informed that in FY24, Adani Group’s various sectors showed significant growth. Adani Power reported a 12 per cent increase in operating capacity, reaching 15,250 MW, according to the group’s chairman.

Meanwhile, Adani Total Gas expanded its network of CNG stations, surpassing 900 stations, and also commissioned 606 electric vehicle (EV) charging points. The Adani Group's combined cement production capacity grew to 79 million metric tonnes per annum (MTPA) from 67.5 MTPA. Furthermore, looking ahead, he informed that there are plans to further enhance the cement capacity to 140 MTPA by 2028.

Additionally, its media arm, NDTV, experienced a notable 39 per cent rise in global digital traffic during FY24.

Gautam Adani’s salary lower than executives’

Gautam Adani, India's second-richest individual, earned a total salary of Rs 9.26 crore in 2024, which is less than what his key executives and industry peers received. According to the annual report from the Adani Group's 10 publicly listed companies, Adani received a salary from only two of these firms within his diverse ports-to-energy conglomerate.

For the 2023-24 financial year, Adani's compensation from Adani Enterprises Ltd (AEL), the group's leading company, included a salary of Rs 2.19 crore and additional benefits, allowances, and perquisites totalling Rs 27 lakh. This made his overall remuneration Rs 2.46 crore, marking a 3 per cent increase from the previous year. Additionally, he received Rs 6.8 crore from Adani Ports and SEZ Ltd (APSEZ), according to the AEL 2023-24 annual report.

Adani Ports joins BSE Sensex

Adani Ports has been added to the S&P BSE Sensex, replacing Wipro in the 30-stock index as part of the semi-annual adjustments. As a new member

of the Sensex, Adani Ports is expected to attract passive inflows of $259 million, resulting in the addition of 14.9 million shares, according to brokerage firm Nuvama. Meanwhile, Wipro's removal from the index could lead to outflows of $170 million.