Concerns about exposure of state-owned LIC's investment in the Adani Group following the impact of the Hindenburg report on its stocks, have been allayed by the government. But while the exposure public sector entities to Adani is within manageable limits, foreign investors are exercising concern. With an audit pending following allegations of market manipulation against Adani, French firm TotalEnergies has put a project with the firm on the backburner.
The firm supposed to collaborate with Adani for green hydrogen generation, had announced a partnership last year, but is yet to ink the pact. It was supposed to buy a 25 per cent stake in Adani New Industries, which is planning to develop a green hydrogen ecosystem worth $50 billion. But that investment has been put on hold by TotalEnergies, which already has a $3.1 billion exposure to the Adani Group.
Although Adani has denied allegations made by Hindenburg Research as malicious, it lost $120 billion due to a crash in stock prices. Despite a rebound, it could only trim the losses to below $110 billion, and the recovery remains an uphill task. As SEBI and RBI have taken stock of the stock market rout and exposure banks respectively, a UP-based discom has also cancelled an order for 7,500 smart metres.
A UK-based firm Elara Capital, which was the bookmaker for Adani's now cancelled FPO, and was also mentioned in the Hindenburg report, is now facing a probe. The UK's Financial Conduct Authority has reportedly launched an investigation into the company, where ex-British PM Borish Johnson's brother served as an independent director.
