close
close
darbo

‘We will rise stronger’: Gautam Adani defends group against allegations

Posted on by Nargang
‘We will rise stronger’: Gautam Adani defends group against allegations

He went public for the first time after his recent allegations and indictment in the US, Adani Group Chairman Gautam Adani said on Saturday that his conglomerate was committed to compliance and that “every attack makes us stronger”.

“Less than two weeks ago, we faced a series of allegations from the US regarding our compliance practices. This is not the first time we have faced such challenges. What I can tell you is that every attack makes us stronger,” he said while addressing the 51st Gems and Gems Awards here.

On November 20, 2024, the United States Department of Justice and the US Securities and Exchange Commission (SEC) issued an indictment and civil complaint in New York District Court against key officials Gautam Adani, Sagar Adani and Vneet Jaain of Adani Green Energy Ltd (AGEL).

The charges relate to allegations of securities fraud, wire fraud and violations of SEC guidelines that led to false and misleading statements in AGEL’s bond offering documents regarding its anti-bribery and anti-corruption policies.

Adani Group has issued a statement denying all the allegations as baseless and saying it will seek legal recourse to defend itself.

No one charged

Speaking at the event on Saturday, Adani said that despite widespread reporting, no one from Adani had been charged with violating the US Foreign Corrupt Practices Act (FCPA) or any conspiracy to obstruct justice.

“The truth is, despite many reports, no one at Adani has been charged with any FCPA violation or conspiracy to obstruct justice. However, in today’s world, negativity spreads faster than facts,” he said, adding that the group was committed to complying with regulations.

“As we work through the legal process, I want to reaffirm our absolute commitment to world-class regulatory compliance,” he added.

Adani Green Energy Ltd, the renewable energy arm of the port-to-energy conglomerate, called off a $600 million bond issue on 21 November.

The 20-year green bond was oversubscribed three times, hours before US prosecutors accused Gautam Adani and associates of participating in a scheme to pay more than $250 million in bribes to Indian officials in exchange for conditions favorable for solar energy contracts.

Stocks are coming back

Shares of Adani Group companies also wobbled in Mumbai trade following the indictment. The group’s ten listed firms lost about $26 billion (Rs 2.19 lakh crore) in market value — more than double what the conglomerate had lost when US short seller Hindenburg filed a damning report in January 2023 .

However, as of Wednesday, the stocks of all companies in the group have recovered. Shares in nine of the 11 listed Adani Group firms closed on Friday, with Adani Green Energy up nearly 22% and Adani Energy up nearly 16%.

“Over the years, I have come to accept that the obstacles we face are the price of pioneering. The bolder your dreams, the more the world will scrutinize you. But it is in this control that you have to find the courage to stand up, challenge the status quo and build a path where there is none,” he said.

Adani said the group had had successes, but the challenges were greater.

“However, these challenges have not broken us. Instead, they defined us. They have made us tougher and give us the unshakable belief that after every fall, we will rise again, stronger and more resilient than before,” he said.

Last year, the conglomerate abandoned a 20,000-pound follow-on public offering (FPO) of its parent company, Adani Enterprises Ltd., after a report by U.S. short-seller Hindenburg Research in January alleged the group was manipulating stocks and accounting fraud.

Adani has denied all allegations and threatened to sue Hindenburg over his “reckless” attempt to sabotage the sale of mega shares in Adani Enterprises.

However, the allegation sent shares of the group’s firms into freefall, which at their lowest point saw their market value eroded by $150 billion.

About the Hindenburg report

Speaking about the Hindenburg report, he said: “It was not a typical financial strike, it was a double whammy, targeting our financial stability and dragging us into a political controversy. All this has been further amplified by certain vested media. But even in the face of such adversity, our commitment to our principles has remained strong.” Adani said that after successfully raising ₹20,000 crore from India’s largest FPO, the company has taken the extraordinary decision to return the proceeds.

“We then demonstrated our resilience by raising capital from multiple international sources and proactively reducing our debt-to-EBITDA ratio to below 2.5 times, a measure unmatched in the global infrastructure space,” he said.

“Our record financial results in the same year demonstrated our commitment to operational excellence. No Indian or foreign credit rating agency has downgraded us. Finally, the affirmation of our actions by the Supreme Court of India validated our approach,” he said.

He also said that in 2010, when the group invested in a coal mine in Australia, its objective was to secure India’s energy and replace every two tonnes of low-quality Indian coal with one tonne of high-quality coal from Australia.

However, he said, the resistance from NGOs was huge and lasted almost a decade.

“It was so intense that we ended up financing the entire $10 billion project with our own capital. Although we now have a world-class mine operating in Australia and it could be seen as a great sign of our resilience,” he said.

Adani shared his journey of becoming an entrepreneur and highlighted his dominance in various sectors.

He also advised businessmen to embrace technology and sustainability for progress, empower and strengthen the skilled workforce, nurture the younger generation and equip them to balance tradition with transformation, culture with innovation and heritage with sustainability .