Adani stocks drop and group losses swell to $150 billion as charm-offensive campaign reportedly begins
By Anviksha Patel
The majority of Indian conglomerate Adani Group's stocks fell on Monday as the company's investor roadshow tour to appease investors kicked off in Asia, following after a short seller attack back in January.
Shares in flagship firm Adani Enterprises fell over 9% in Mumbai, while Adani Ports barely rose by 0.55%.
Billionaire Gautam Adani's quest to win back investor trust began with a charm-offensive campaign in Singapore on Monday. Executives will then hold investor meetings in Hong Kong on Tuesday and Wednesday, Bloomberg reported on Monday.
Jugeshinder Singh, group chief financial officer and the company's head of corporate finance, Anupam Misra, will reportedly present a three-pronged strategy to investors.
The strategy is expected to include a three-year plan for liquidity: repaying maturities; addressing all of Hindenburg's allegations; and revealing measures to improve corporate governance.
Losses at Adani Group have totaled more than $146 billion since U.S. short seller Hindenburg Research published a report alleging fraud at the Indian conglomerate.
Pressure on the Indian group to mitigate the losses has been mounting since Hindenburg's report. Earlier this month, Adani called off Adani Enterprises' $2.5 billion share sale after it shed tens of billions of dollars in market value.
Days later, India's regulator, the Securities and Exchange Board of India, or SEBI, issued a statement to inform the market that it was placing extra surveillance measures on companies linked to Adani Group.
The group has been attempting to encourage more positive investor sentiment, as Adani Ports announced a plan to repay a 50 billion rupee ($604 million) debt in the next financial year.
Adani Group did not immediately respond to MarketWatch's request for comment.
(END) Dow Jones Newswires
02-27-23 1100ETCopyright (c) 2023 Dow Jones & Company, Inc.