Adani Group Companies To Review Capital Market Strategies Once Volatility Subsides
Adani Group has exuded confidence over growth prospects of its portfolio companies, which have been rocked by volatility of the past few weeks.
Balance sheet of each of the independent portfolio companies is “very healthy”, an Adani Group spokesperson told BQ Prime in response to a question on growth prospects. “We have industry-leading development capabilities, strong corporate governance, secure assets, strong cashflows, and our business plan is fully funded.”
“Once the current market stabilises, each entity will review its own capital market strategy. Rest assured, we are confident in the continued ability of our portfolio to deliver superior returns to shareholders.”
The stocks of Adani Group companies came under pressure after a report by U.S.-based short seller Hindenburg Research alleged stock manipulation and fraud.
In response, the group’s Chief Financial Officer Jugeshinder Singh had termed the report a “malicious combination of selective misinformation and stale, baseless, and discredited allegations that have been tested and rejected by India’s highest courts”.
The stock rout led to Adani Enterprises withdrawing its Rs 20,000-crore FPO to protect investor interests.
Recently, MSCI Inc. reduced the weightage of Adani Group companies listed on its indexes following a review of their free float status.
Disclaimer: Adani Enterprises is in the process of acquiring a 49% stake in Quintillion Business Media Ltd., the owner of BQ Prime.