Adani Group, helmed by billionaire Gautam Adani, intends to invest a substantial 7 trillion rupees ($84 billion) in infrastructure over the next ten years. This ambitious financial strategy aims to counteract the significant market value drop following allegations by Hindenburg Research earlier this year.
Jugeshinder Singh, the group’s chief financial officer, expressed the company’s aspiration to increase investments during a press briefing in Mumbai, emphasizing their commitment without specifying further details.
These spending objectives form part of Adani’s concerted efforts to counter the damaging allegations made by Hindenburg Research, which accused the conglomerate of stock price manipulation and accounting malpractice. Adani vehemently refuted these accusations.
In July, during an annual shareholder address, Adani announced expansive expansion plans for its ports, energy, and infrastructure sectors. This came after the conglomerate scaled back non-core investments, focusing on bolstering shareholder confidence and reducing debt.
The group plans to raise funds through bonds, utilizing high-yield papers and private placements via entities like Adani Ports and Special Economic Zone Ltd. and Adani Energy Solutions Ltd. Singh mentioned plans for capital infusion to settle the green energy arm’s bonds due in September and December next year, possibly in July to avoid penalties.
Recent positive developments include India’s Supreme Court concluding hearings on the Hindenburg allegations, reserving judgment. Additionally, a US government agency pledged over $500 million in financial aid to Adani’s Sri Lankan port terminal project, a move lauded by Adani’s son as an affirmation by the international community.