Short seller attack was to defame India's governance practices: Adani

After the Hindenburg report's release, shares of the Adani group fell sharply but later recovered after the promoters sold shares and prepaid part of their debt

The objective of the attack by US-based short seller Hindenburg on the Adani group shares last year was not only to destabilise the group but also to politically defame India’s governance practices, said Gautam Adani, chairman of the Adani group, in Mumbai on Monday.

“Despite efforts to shake our foundations, we stood firm, not just safeguarding our reputation but also ensuring we remained focused on our operations. While there were several learnings, this episode also gave us confidence in our resilience. Our recovery highlights the essence of bouncing back stronger, symbolising the spirit of rising after every fall,” Adani said at a private event for young entrepreneurs, referring to the report by  Hindenburg Research, released in January last year. After the report’s release, shares of the Adani group fell sharply but later recovered after the promoters sold shares and prepaid part of their debt. 

 

#WATCH | Mumbai: On the shorting that Adani Group had to go through, Chairman Gautam Adani says, "..Last year, January 24, we were subject to a massive attack by a US short seller. The objective was just not to destabilise us, but also to politically defame India's governance… pic.twitter.com/4O3FkXwuxJ

— ANI (@ANI) March 13, 2024

“All success will come with its challenges and challengers. The greater your success, the bigger you will be as a target, and the true measure of your success will not be in your achievements but in your ability to rise through the adversities that come with your achievements,” Adani said.

 

Adani noted that the digital age has democratised the playing field, opening opportunities to a far greater number of companies. “This is the age of exponential growth. The most striking manifestation of this digital revolution is the emergence of new disruptive tech billionaires. An interesting statistic is that in the 1990s, India had just two billionaires. Today, the number is 167,” said Adani.

Adani mentioned it took India almost 58 years to reach its first trillion dollars of Gross Domestic Product, another 12 years for the next, and just five years for the third trillion. “This acceleration is unstoppable, and I anticipate that within the next decade, India will begin adding a trillion dollars to its Gross Domestic Product every 18 months, setting us on the path to becoming a 25 to 30 trillion-dollar economy by 2050,” Adani said.

On stock markets, Adani projected that the total market capitalisation of listed companies in India is expected to dramatically increase and range from $40 trillion to 45 trillion, indicating a tenfold growth from the current $4 trillion. “No other nation will be even close to achieving such growth, and India will have its own trillion-dollar valued companies,” Adani said.

“The trends are already visible, and one sign is seen in the number of billion-dollar valued companies we now have. Today, India is home to over 500 companies valued at over a billion dollars, ranking us fourth in the world. In 1991, we had none,” Adani recalled, reflecting on the group's journey over the years.