Hit by allegations of stock market manipulation, Adani's stocks have lost almost 60 per cent in value in just the past month. At one point the Adani stock market rout dragged Indian indices out of the world's top five, and its latest crash cost Indian investors Rs 40,000 crore in a day. But reverberations of the fiasco have been felt in Australia, where workers may lose tens of millions in savings because of the Adani stock decline.
Multiple retirement funds in Australia, including one which manages savings of government employees, have invested in the conglomerate's firms. The Australian Retirement Trust also has exposure worth millions to six group companies, and the $234 billion Future Fund also has exposure to two Adani firms. It had invested more than $33 million in Adani before the Hindenburg reported a selloff.
The retirement trust became exposed to Adani because of investments carried out by external fund managers tasked with placing money in emerging sectors of different countries. An asset managment campaigner in Australia has also slammed the companies for failing when it comes to climate action and due dilligence.
Adani had been facing flak from climate activists in Australia over its Carmichael coal mine, over operations that caused pollution.
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