Adani slashes growth targets amid rout sparked by Hindenburg

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© Reuters. FILE PHOTO: The logo of the Adani Group is seen on one of its buildings in Ahmedabad, India, January 27, 2023. REUTERS/Amit Dave

(Reuters) – India’s Adani group has halved its revenue growth target and plans to scale down fresh capital expenditure, Bloomberg News reported on Sunday.

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.

The group has rejected the allegations and denied any wrongdoing.

Adani group will now shoot for revenue growth of 15% to 20% for at least the next financial year, down from 40% originally targeted, Bloomberg News said citing people familiar with the matter.

A spokesperson for Adani Group did not immediately respond to a request for comment.

Holding back on investments for even as little as three months could save the conglomerate as much as $3 billion, the report said, adding that the plans are still imminent.

Adani group has also been a part of India’s market regulator’s investigation into the group’s links to some of the investors in its scrapped $2.5 billion share sale.

Earlier this month, India’s ministry of corporate affairs started a preliminary review of Adani Group’s financial statements and other regulatory submissions made over the years, Reuters reported, citing two senior government officials.

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