Serious allegations made in the Hindenburg report led to the loss of market value for the Adani Group, which also dragged down investor confidence in the conglomerate. The concerns about the conglomerate's debt have also spooked investors, while concerns were raised about the exposure of banks to the group. After paying off loans ahead of time to address debt concerns, the Adani Group has roped in banks to set up meetings with investors.
Between February 16 and 21, lenders including BNP Paribas, Deutsche Bank, DBS, Emirates NBD, Standard Chartered and MUFG, will arrange calls between Adani and fixed-income investors. The group has also dismissed liquidity concerns and added that there are no debts maturing in the near term.
Despite a recovery by some group stocks, the firm's loss in market value still stands at more than $100 billion. Firefighting by the port to power conglomerate hasn't triggered a significant bounceback, as four Adani stocks were downgraded by Moody's. The removal of free float status for its stocks made matters worse, as SEBI has also started investigating the damning Hindenburg report.
While downplaying the stock market rout of its firms as temporary volatility, Adani has hired a law firm in New York, and the world's seventh largest audit firm to establish credibility.
