The Adani Group has lost more than a $100 billion in market value ever since the Hindenburg fiasco exploded in Indian markets. The rout had spooked Indian investors and downgrading of Adani's stocks by Moody's, removal of their free float status and a cancelled FPO made matters worse.
Now Gautam Adani has come forward to term the rout as temporary market volatility, and to promise that the firm will moderate leverage while maintaining growth and expansion. The tycoon has made the statement in a bid to allay concerns among investors and tackle the decline of its stocks. He also added that the port to power conglomerate hasn't made any material adjustments to third quarter results of Adani Enterprises, which are for the period before the Hindenburg report triggered a storm.
The stocks for the group's flagship firm Adani Enterprises entered green territory, after it posted Rs 820 crore in profits. Amidst the turmoil, the group's Chairman has addressed shareholders and investors to allay fears. He posted a video message while announcing the cancellation of the Adani Enterprises FPO, purportedly to protect investors from volatility.
The Adani Group has paid back loans before time, hired a law firm in the US and an international accounting firm for independent audits, in a bid to win back investor confidence. Although it manages to pare losses when some of the firms make a recovery, the sell-off of Adani stocks hasn't stopped. Even after bouncing back before falling again, the group's collective market cap loss stands at $110 billion.
