By Ben Otto
Adani Enterprises Ltd. is evaluating taking legal action against Hindenburg Research, the U.S. short-selling firm that released a report alleging fraud at the Indian conglomerate.
Jatin Jalundhwala, Adani's group head of legal, said in a statement Thursday that the company is examining provisions under U.S. and Indian laws "for remedial and punitive action" against Hindenburg, whose report he said was "designed to have a deleterious effect on the share values of Adani Group companies."
He described the report as "maliciously mischievous" and as an attempt to mislead investors and sabotage a follow-on public offering by Adani Enterprises.
Shares in seven companies linked to Adani fell Wednesday after Hindenburg released a lengthy report alleging fraud at the conglomerate of Indian billionaire Gautam Adani. Adani Enterprises ended 1.5% lower, while Adani Ports & Special Economic Zone Ltd. fell 6.3%. Indian bourses were closed Thursday for a holiday.
Hindenburg said it conducted a two-year investigation into Mr. Adani's business practices, and had taken a short position in the group's companies through U.S.-traded bonds and non-Indian-traded derivative instruments.
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(END) Dow Jones Newswires