To Win Back Investors' Trust, Adani Group To Probe Hindenburg Allegations

In a statement issued on Tuesday, the Adani Group said that it is going to initiate an independent assessment pertaining to the various allegations raised against it in the Hindenburg Research Report. The report released on January 24 raised multiple issues relating to irregularities in Adani Group's books and corporate governance lapses, as reported in the The Economic Times (ET).

The decision to undertake an independent assessment comes at a time when investor faith in the group has been shaken. According to industry experts, an independent probe into the matter may help restore the investor community's faith in the group. Investors have witnessed steep wealth erosion in their portfolios in recent weeks, ET reported.

"Adani Group should take this as an opportunity to iron out wrinkles in their corporate governance practices, including greater disclosures on related-party transactions," said Shriram Subramanian, founder of corporate governance and proxy advisory firm InGovern Research Services, as reported by ET.

Although the group has strongly denied the allegations made against it, industry observers believe that it will take time to win back investors' trust, especially in global debt markets, as reported by ET.

The group paid off $1.1 billion (Rs 9,203 crore) worth of loans ahead of scheduled payment dates to release pledged shares.