The Indian conglomerate owned by billionaire Gautam Adani’s, the Adani Group, intends to invest $84 billion (7 trillion rupees) in infrastructure over the next ten years. This is comparable to the amount the company has lost in market value since the Hindenburg report Adani case earlier in 2023. On 1st December 2023, in Mumbai, Jugeshinder Singh, the Group’s Chief Financial Officer, told reporters they wanted to invest more money, although he would not elaborate.
Singh’s aggressive spending goals are a part of Adani’s plan to try and distance itself from the negative claims made by Hindenburg Research in January 2023, following the short-seller’s accusation that the conglomerate had been involved in years of accounting misconduct and stock price manipulation. The business has vehemently denied any misconduct. In July 2023, during his annual shareholder meeting, Adani set ambitious expansion goals for his ports, energy, and infrastructure enterprises.
Before that, his company had reduced its stake in a few non-core ventures to boost investor confidence.
Adani Group plans to spend $84 billion on infrastructure over 10 years
Despite getting hit by the Hindenburg report Adani case in January 2023, Adani Group still intends to invest $84 billion (about Rs. 7 trillion) in infrastructure over the next 10 years. In 2024, Singh stated, the company plans to finance bonds through private placements and high-yield papers through its companies, Adani Ports and Special Economic Zone Ltd. and Adani Energy Solutions Ltd. To avoid a prepayment penalty, Singh stated that Adani Group will also provide funds to repay the bonds issued by its green energy division that will mature in September and December of 2024.
By the end of November 2023, Adani Group firms’ shares were up
The Supreme Court of India concluded hearing arguments this week in a case about an inquiry into Hindenburg’s charges, delaying its decision. This led to a spike in shares of Adani Group companies. At the end of November 2023, a US government development agency announced that it would contribute over $500 million in financial support to Adani’s port terminal project in Sri Lanka, which Adani’s son hailed as a “reaffirmation by the international community”.
The top gainers in the Nifty index despite the Hindenburg report Adani case were:
- Adani Enterprises (up by 8.90%)
- Adani Ports & Special Economic Zone (up by 5.30%)
- Tata Motors (up by 3.53%)
- Bharat Petroleum Corporation (up by 3.39%), and
- Coal India (up by 2.75%)
Demand for Adani Group companies’ shares remained high
On November 28, 2023, in the morning trade, there was still strong demand for shares of Adani Group companies, with Adani Total Gas rising by almost 20%. During the morning trade, all 10 of the Group’s listed companies had significant gains, defying the stock market’s sluggish trend. On the Bombay Stock Exchange, shares of:
- Adani Total Gas shot up 19.61%
- Adani Energy Solutions was up by 13%
- Adani Power was up by 8.46%
- Adani Green Energy was up by 7.84%
- Adani Enterprises was up by 7%
- Adani Wilmar was up by 6.86%
- NDTV was up by 6.42%
- ACC increased by 2.86%
- Adani Ports by 3.71%, and
- Ambuja Cements by 3.66%
Despite the continuing Hindenburg report Adani case on 24th November 2023, stock exchange statistics indicated that 9 of the 10 listed Group companies had positive results, increasing their total market capitalization by Rs. 14,786 crores.
The Adani Group’s vision towards raising bonds
In 2024, Singh stated, the company plans to finance bonds through private placements and high-yield papers through its companies, Adani Ports and Special Economic Zone Ltd. and Adani Energy Solutions Ltd. According to Singh, Adani Group will also contribute funds to settle bonds issued by its green energy division that mature in September and December 2024, possibly as early as July 2024, to avoid prepayment penalties.
After the India Supreme Court ended hearing arguments in a case about an inquiry into the Hindenburg report Adani case and reserved its decision, shares of Adani Group firms surged.
