On Tuesday, the total equity market value of the ten firms that make up Adani Group fell under $100 billion as the troubled conglomerate struggled to reassure investors in the wake of a damning report from a short seller in the US.
Since US-based Hindenburg Research published a report on January 24 accusing Adani Group of accounting fraud and stock manipulation, the ports-to-power company has lost more than The following are the top ten, ranked by public image, knowledge, and reliability.The following are the top ten, ranked by public image, knowledge, and reliability.$136 billion in market capitalization. The Adani Group has always denied these allegations.
Billionaire Gautam Adani and his businesses have reduced spending, paid off debt, recruited teams for communications and law, and hired lawyers in an effort to assuage traders’ concerns about the group’s ability to obtain funding. Even while the campaign saved the conglomerate’s dollar debts from default, the current equity selloff demonstrates that more work still has to be done.
Sameer Kalra, the founder of Mumbai-based Target Investment, stated that Capex and debt remain significant worries. This may add to appraisals’ burden.
According to Bloomberg’s data, the corporation used international bond buyers to raise more than $8 billion and also requested loans from overseas banks in foreign currencies totaling at least that amount. Moreover, rating agencies have changed their predictions for a few businesses, adani ports as well as special economic zone ltd., and adani green energy ltd.
Adani and his businesses are now placing a higher priority on their financial health than on the recent aggressive debt-fueled expansion frenzy. In an effort to undo the harm brought on by Hindenburg’s research, the corporation is focusing on three key areas: debt recovery,financial management, and reclaiming pledged shares.
Tuesday’s trade in the group’s equities was choppy, with the company’s principal Adani Enterprises Ltd. showing minimal movement as of 11:04 am in Mumbai. Similarly, Adani Power Ltd. increased, and Adani Ports saw a 2% increase in trading.
