Times are grim for retail shareholders with Adani stocks, as allegations of fraud against the conglomerate have hit its market value. But for truck drivers transporting cement from its plants for less than Rs 600 a day, Hindenburg Research emerged as an ally. The might Adani which was refusing to budge to demands of 7,000 truckers, agreed to settle after a $140 billion stock market rout shook up its position.
The truck owners and drivers had been protesting against Adani's decision to shut down two cement plants in Himachal Pradesh, which would affect their livelihood. But that was before the conglomerate was hit by concerns about its debt and started prepaying loans picked up against cement stocks of ACC and Ambuja. Now the Adani Group has resolved the deadlock with truckers, for a price reduction of 10-12 per cent.
According to reports by Reuters, the negotiators feel that the Hindenburg report contributed to the resolution, which won't affect Adani's fortunes but has saved the livelihood of truckers. The amicable solution was also driven by Adani's quest to clean up its image which has been blemished by the Hindenburg Research report, accusing it of fraud. Another claim about Adani manipulating Wikipedia articles through puppet accounts, also triggered another stock crash for its group firms on Wednesday.
Adani's move to resolve the 67-day dispute in a Congress-ruled state, is also intended to counter the allegations of the conglomerate's proximity to the BJP government in the centre.
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