Gautam Adani sets priorities after SEBI dismisses Hindenburg allegations: ‘We must build not for…’

Billionaire Gautam Adani announced that his ports-to-energy conglomerate will focus on speeding up innovation, enhancing transparency, and creating lasting, meaningful impact. This comes after the Securities and Exchange Board of India (SEBI) recently dismissed Hindenburg's allegations concerning accounting irregularities, stock manipulation and the involvement of opaque offshore entities.

News agency PTI saw an internal message from Adani to staff, which read, “Today, a cloud that had hung over us for more than two years has been lifted. SEBI's comprehensive investigation has concluded by rejecting all allegations contained in the Hindenburg report from January 2023."

“We must build not for today's applause but for a legacy that endures for decades. Headlines fade, but what we create must leave its mark on history. Either we shape the future into what we dream or be shaped by the future into what we fear,” the tycoon remarked.

Following the report's release, SEBI initiated several investigations, including probes into related-party transactions and offshore fund arrangements. In two separate orders, it stated that there was no proof that the conglomerate used related-party transactions to funnel funds into its listed companies, and that the transactions highlighted by Hindenburg did not qualify as related-party transactions.

However, SEBI’s orders do not dismiss the other allegations made by Hindenburg, and the Adani group still faces regulatory pressure due to an indictment by the US Department of Justice in an alleged USD 265 million bribery case, the report noted.

Allegations part of ‘targeted, multidimensional assault’

The allegations led to a sharp selloff in Adani Group’s publicly listed companies, wiping out over USD 150 billion in market value at one stage. The Adani Group consistently rejected the claims made by Hindenburg, which has since ceased operations. Adani described these claims as part of a “targeted, multidimensional assault", saying, “This attack was never just a market event.”

He attributed the sustained operational progress to his employees despite worldwide scrutiny. Adani acknowledged the group's workforce for successfully carrying out key infrastructure projects despite the scrutiny. The development of ports, power plants, airports, and renewable energy initiatives progressed steadily even as the group dealt with reputational and legal challenges.

‘Adani character is simply unbreakable’

“While the world debated about us, our ports expanded, transmission lines stretched farther, power plants ran reliably, renewable projects continued to green the world, airports advanced, cement furnaces fired away, and logistics teams delivered flawlessly. You proved that execution under pressure is the truest test of character, and that the Adani character is simply unbreakable,” he said, according to PTI.

He mentioned that the company had emerged more resilient and outlined its future goals, which emphasise transparency, innovation, creating long-term value, and driving transformation. “Integrity and transparency must remain the foundation of everything we do, inseparable, uncompromising, and safeguarded relentlessly,” Adani added.

The report said additional priorities will involve speeding up innovation in energy, logistics, and infrastructure, establishing a lasting legacy that goes beyond short-term attention, and actively leading transformation to influence the future instead of being influenced by it.

Meanwhile, as of Monday, Adani Enterprises Ltd shares have surged over 80% year-to-date, surpassing the Nifty 50 Index.

(With inputs from PTI)