Leading cement maker ACC Ltd, now a part of Adani Group, said it will not conduct any independent investigations against the allegations of financial misconduct made by the short-selling firm Hindenburg Research.
Adani Group had already undertaken a review by independent law firms, whose opinions confirmed that the company is in compliance with the requirements of applicable laws and regulations, said ACC Cement while declaring its quarter results on Thursday. “Based on the foregoing and pending final outcome of the regulatory investigations and related proceedings as mentioned above, the Company has decided to not carry out any separate independent Investigation in the matter, and the financial results do not carry any adjustments in this regard,” it said.
Hindenburg on January 24 accused Adani of “brazen stock manipulation and accounting fraud” as well as using a “labyrinthian network” of shell companies for surreptitious money movements, allegations that the conglomerate has strongly denied, calling the report “a calculated attack on India”. The report lopped off close to USD 150 billion in the market value of the group’s listed companies at the lowest point, and led to Adani losing the richest Indian tag.
ACC said a writ petition was filed in the matter before the Supreme Court. During the court proceedings, the Securities and Exchange Board of India said it was investigating the allegations made in the short seller report for any violations of applicable Sebi Regulations.
The Apex court on March 02, 2023, constituted an expert committee to investigate and advise on the various aspect of existing laws and regulations and directed the regulator to consider certain additional aspects in its scope. “The Expert committee submitted its report in the matter dated May 6, 2023, finding no regulatory failure, which is pending to be concluded by the Supreme Court. The Supreme Court has also provided Sebi time till August 14, 2023, to complete its investigation,” it added. Earlier this month in the annual shareholders meeting of his ports-to-energy conglomerate, Gautam Adani slammed Hindenburg for a ‘malicious’ attempt to damage the reputation of his conglomerate.
Adani had said the group’s assets and operating cashflows have got stronger and healthier, and it will continue to consolidate what it has built while looking at expansion. Last year in September, Adani completed the acquisition of Ambuja Cement and its subsidiary ACC, becoming the country’s second-largest cement player.
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