Listed companies controlled by billionaire Gautam Adani have lost more than $ 100 billion in market value since Jan. 24, when U.S. short seller Hindenburg Research accused the conglomerate of stock manipulation and improper use of offshore tax havens.
Reuters
February 13, 2023 / 06:26 AM IST
Adani group
Gautam Adani’s conglomerate has halved its revenue growth target and plans to hold off fresh capital expenditure, according to people familiar with the matter, as the Indian billionaire seeks to rebuild investor confidence in the wake of a bruising short seller attack.
The group will now shoot for revenue growth of 15% to 20% for at least the next financial year, down from the 40% growth originally targeted, said the people, who didn’t want to be named as the discussions are private. Capital expenditure plans will also be scaled down, they said, as the group prioritizes bolstering its financial health over aggressive expansion.
The shift shows how the ports-to-power conglomerate is focused on conserving cash, repaying debt and retrieving pledged shares as it scrambles to undo the damage from a scathing report by Hindenburg Research on Jan. 24. Even though Adani Group denied the allegations of accounting fraud and stock manipulation levied by the American short seller, the scandal triggered a stock rout that has wiped more about $ 120 billion off the Adani empire’s market value.
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