Resilience against short-seller attack strengthens Adani Group: Gautam Adani at AGM

Adani Group AGM: Adani Group chairman Gautam Adani today detailed how the company successfully overcame a significant challenge posed by the short-seller Hindenburg Research. He stressed that the attack not only failed to undermine the group’s foundations but ultimately fortified its resolve and strength. Gautam Adani was addressing the 32nd Annual General Meeting of the conglomerate's flagship Adani Enterprises. 

Adani began by celebrating the 30-year milestone of Adani Enterprises, reflecting on its journey from a modest IPO in 1994 to becoming one of India’s most prominent companies. He underscored the company’s core values of courage, trust, and commitment, which have guided it through both successes and adversities.

Addressing the Hindenburg report, Adani labeled it a "baseless and calculated" attack intended to inflict maximum damage on the company’s reputation and market value. The report, released just before the closing of a significant Follow-on Public Offer (FPO), sought to create financial and political turmoil for the group.

"It was a two-pronged attack – an unfounded critique of our financial stability and an information distortion campaign aimed at defaming us," Adani stated. Despite successfully raising Rs 20,000 crore through the FPO, Adani Enterprises made the extraordinary decision to return the proceeds to investors.

In the wake of the attack, Adani Enterprises took robust measures to ensure financial stability. The company raised an additional Rs 40,000 crore to cover two years of debt repayment, pre-paid Rs 17,500 crore in margin-linked financing, and reduced its Debt to EBITDA ratio from 3.3x to 2.2x in just six months.

Adani also highlighted the Supreme Court of India’s dismissal of all allegations against the group, reaffirming their integrity and actions. "The challenges that tested us have ultimately forged us into a stronger entity, more resilient and prepared for the future," he said.

In the financial year 2023-24, Adani Enterprises achieved its highest-ever EBITDA of Rs 82,917 crore and a profit after tax of Rs 40,129 crore, with a strong liquidity position marked by a cash balance of Rs 59,791 crore.

Adani concluded by expressing optimism about India’s economic future and the group’s pivotal role in it. He pointed to major projects, such as the world’s largest renewable energy installation in Khavda and the redevelopment of Mumbai’s Dharavi, as symbols of their commitment to sustainability and national development.

"As we advance into the era of energy and digital transition, our country is unlocking markets that promise trillions of dollars of value over the next decade," Adani said. "With our record results and robust financial position, our path ahead is illuminated with the promise of even greater accomplishments."