Adani To Spend More After The Hindenburg Trial (Image: X.com/gautam_adani)
After the Hindenburg trial, the Adani Group is planning on an investment to the level of $84 billion. The plan of more expenditure is being considered to be a part of a bigger strategy to overcome the allegations floated at the Group by the Hindenburg Research in January this year. The spending plan is expected to be rolled out for the coming decade.
The Group plans to invest $84 billion which would be seven trillion Indian rupees. It is to be spent on projects on infrastructure, spanning a time period of a decade. On this, the Chief Financial Officer of Adani Group, Jugeshinder Singh said, “We desire to invest more.” Apart from this, the CFO, did not spell out any other details, reported the HT. The amount is similar to the amount that the Group had forgone as market value while undergoing the period of allegations by Hindenburg, the US short seller.
Earlier this year, Hindenburg had alleged that the Adani Group had been into manipulating stock prices for years and malpractices in accounting, which the conglomerate has ever since denied of doing. At the annual shareholder’s meeting which was held in July, grand plans that centered around targets to the expansion of the Group’s ports, infrastructure and energy were announced. Before this, the Group, in order to keep the shareholder confidence boosted and also to keep the debts payed down, had backed from some investments.
Jugeshinder Singh, the CFO of the Adani Group said that there are plans to raise bonds through papers and placements in the coming year. This would be taken up through its companies, which would also have Special Economic Zone Ltd. and Adani Energy Solutions Ltd. in the list. He added that the Group would also put in money into its green energy arm’s bonds so as to avoid the penalty for prepayment and to infuse money into the bonds which would be turning mature in the month of September and December in the coming year, said the HT.
After the Supreme Court’s hearing in the Adani-Hindenburg case, which concluded this week, the shares of the Group had picked up. Further, as a booster shot, earlier this month, a United States government development agency came up with an announcement for above $500 million as part of a financial assistance for the Adani Group’s project to port terminal in Sri Lanka. Adani’s son had said that this came as a “reaffirmation by the international community.”
