Adani Group: Can Embattled Tycoon Recover?

 The market value of India’s Adani Group fell after a US investment firm accused it of fraud. Can it reach its ambitious growth goals?

How did the stock market crash happen?

The ports-to-energy conglomerate, made up of seven publicly traded companies, was worth $220bn until two weeks ago.

But since January 24, when a short seller named Hindenburg Research accused the group of “brazen” stock manipulation and accounting fraud, its value has dropped by almost half. The group’s founder, Gautam Adani, has lost billions of dollars and is no longer in the top 20 wealthiest people globally.

The Adani Group has denied the claims, calling them “malicious” and “baseless,” and says that its plans have not changed. But investors are still worried.

In a statement released Monday, the group said it would pay off loans worth $1.1 billion that was taken out using shares as collateral before their due date next year. It said this was partly because of “continued market volatility” and to give reassurance to investors that the group’s backers would “prepay all shares-backed financing.”

The news made the stock of the main company go up. On Tuesday, the Bombay Stock Exchange closed with shares of Adani Enterprises 15% higher.

The group also canceled its secondary share sale last week. The $2.5 billion (£2 billion) it raised was supposed to pay off debt and for projects like airport renovations, building expressways, and an ambitious green hydrogen ecosystem.

Source: https://atlwire.com/adani-group-can-embattled-tycoon-recover/