When Hindenburg Research accused the Adani Group of “brazen stock manipulation” and accounting fraud a year back, it led to a stock market rout that erased about $150 billion in market value at its lowest point.
But unlike its previous targets, tycoon Gautam Adani, who was the world’s second-richest man before the damning January 24, 2023 Hindenburg report, has managed to claw back the narrative on strength of his group’s business fundamentals and performance as well as investors continuing to pour in money into his apples-to-airport conglomerate.
The conglomerate vehemently denied all allegations as it redrew its strategy that included trimming debt through prepayments and repayments of borrowings, paring the founder’s share pledge and bringing in both promoter and marquee investor equity.
The strategy seems to be paying off with share prices of some of the 10 listed companies recovering all of the Hindenburg losses.
The Hindenburg report had questioned the integrity of Adani’s operations and cast a shadow of doubt over the very foundations on which the group’s businesses were built.
Hindenburg had stated that the group was highly leveraged and was facing a precarious financial condition, something not reflected in the financial statements.
A year later, Adani Group has clawed back the narrative with resilient financial and operational performance. Its revenues continued to grow, helping it reduce debt, meet financial obligations, boost stability and make strategic investments to further its growth and expansion plans.
All 15 listed group bonds bounced back and are trading at pre-Hindenburg levels, according to market data.
The surge in Adani Group stocks boosted Chairman Gautam Adani’s wealth, reaching almost $91 billion, according to the Bloomberg Billionaires Index.
Photo Caption- Gautam Adani, Chairperson of Adani Group