The month that followed the allegations made in the Hindenburg Research report, dragged down the Adani Group's market value by $140 billion. But a $2 billion investmnet from US-based GQG Partners run by Rajiv Jain, has given the conglomerate reason to celebrate. The positivity changed investor sentiment as well, triggering a surge in Adani's stocks for five straight sessions.
New investor benefits from crisis
With a jump of as much as 12 per cent, Adani stocks also helped the Indian markets bounce back. Its new investor Jain also made a Rs 3,100 crore profit in two days thanks to the rally, and called his bet on Adani an opportunity in crisis. He further reiterated that airports and ports owned by Adani were fantastic and irreplaceable assets, with stocks available at a good price.
Finding validation
Although there were concerns about LIC's exposure to the port to power conglomerate, its chairperson MR Kumar's confidence in Adani's business prospects, also brought back investors. The firm, which still has a project with France's TotalEnergies on hold, has bagged two mining projects recently. During a visit to India, former Australian PM Tony Abott also spoke in support of Adani and praised his investments abroad.
Concerns remain
On the other hand, ratings agency ICRA has downgraded the outlook on Adani Ports from stable to negative, citing its lack of financial flexibility as a reason. Former RBI Governor Raghuram Rajan has also raised questions about SEBI's reluctance to investigate Mauritius-based funds named in the Hindenburg report.
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