Attempts to overcome the crisis
The latest fund-raising plans show the sprawling empire, which spans from ports to energy, looking to navigate a crisis triggered by allegations of fraud brought by financial research firm Hindenburg Research against the group at the end of January, wiping out more than $100 billion. of its market value. Despite denying these accusations; Business magnate Adani and his aides had to take a slew of measures to appease investors, including Adani Enterprises’ cancellation of a $2.4 billion stock sale in February.
Both companies said in their filings that they would seek shareholder approval in due course. Adani Green Energy was also scheduled to hold its board of directors meeting today, before postponing it to May 24, and attributed that to “some requirements.”
Adani Group prepays loans worth $2.15 billion
US-based GQG Partners in early March bought founders’ stakes in four subsidiaries of the group – Adani Ports and Special Economic Zone and Adani Green Energy “,” Adani Transmission, and “Adani Enterprises” – for $ 1.9 billion, in a huge vote of confidence in the giant group. GQG’s Rajeev Jain told Bloomberg at the time that the Adani companies had “enormous and irreplaceable assets”. In April, Jin, one of the brightest investors in emerging markets recently, said that these stocks could yield returns over five years.
