Adani Group has been singed by Hindenburg Research Report since January 24 , it has lost more than $ 100 billion in market value. Accusations by US Short seller Hindenburg Research which alleged that Gautam Adani led conglomerate had manipulated stock and used off shore tax havens led to a free fall in its market value. It has lost more than $100 billion in market value and has been forced to slash its revenue growth target sharply by 50 percent.
Adani Group slashes its revenue growth target sharply by 50 percent
Adani Group has out rightly rejected allegations leveled by Hindenburg’s report , however it has failed to satisfy its shareholders and global financial institutions.
Further the Adani Group has been forced to reduce its revenue growth target by financial institutions amid dwindling share prices by global financial institutions . The conglomerate has been forced to reduce its revenue growth target to 15-20 percent for current fiscal year, which is down from the original 40 percent.
Long Term Adverse Impact for Adani Group
Several analysts have pointed that crisis triggered by Hindenburg report, can have long term repercussions on growth of Adani Group with foreign banks exhibiting hesitation towards lending and Global wealth funds have started reducing the group in wake of allegations.
In the meantime , the Adani Group has also been part of market regulator Sebi’s investigation into its links to some of the investors, in connection with the withdrawn follow-on-public offer (FPO) of Adani Enterprises. Further, it is going to be a crucial week for Adani Group as Sebi’s board will meet with Finance Minister Nirmala Sitharaman to provide an update on its investigations into the Adani Group’s withdrawn secondary share sale.
Furthermore, the Sebi Board is expected to brief the finance minister on surveillance measures taken by regulator during the recent rout in Adani Group stocks.
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