Adani Group has now come out from the shadow of Hindenburg Research, the shares of the group are gaining momentum.
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But it seems that now Adani Group has recovered from the effects of Hindenburg Research. Adani Group has taken several steps to win the trust of investors and lenders. The group claims to have repaid $2.65 billion in debt. Analysts at CreditSites say that the debt position of Adani Group has improved. CreditSites Senior Research Analyst Lakshmanan R told Bloomberg in an email that Adani Group’s debt position has improved in FY2023 compared to FY22. Lakshmanan had claimed a year ago that Adani Group companies have huge debt. But now he has upgraded his opinion about it.
Work will start again on PVC project
Meanwhile, the Adani Group is all set to resume work on its PVC project in Mundra. Work on it was stalled for four months. An initial funding of Rs 14,000 to 16,000 crore is planned on this. A Mint report quoted sources as claiming that Mundra Petrochem has got credit lines from banks for this. The total cost of this project is estimated to be Rs 35,000 crore. In February, the group stopped work on the project. The group changed its priorities because of the Hindenburg Research report. Instead of expanding, the group adopted a debt reduction strategy.
Circuit limit of four shares increased
On the other hand, BSE has increased the circuit limit of four shares of Adani Group. The circuit limit of Adani Green Energy, Adani Transmission and Adani Wilmar has been increased from five per cent to 10 per cent. Adani Power’s limit has been increased from five percent to 20 percent. The shares of Adani Group were seeing a lot of volatility due to the report of Hindenburg Research. For this reason their circuit limit was changed. But for the last few days, there is stability in them. Many of these stocks have recovered from 52-week lows and have gained 25 to 80 per cent. Adani Enterprises had given a multibagger return last month.
Gautam Adani: Why did Adani put brakes on his $50 billion dream project?
investors standing in line
The group plans to raise $3 billion by selling shares of its three companies to institutional investors. This is the first major move by the group after the Hindenburg Research report. According to media reports, the boards of Adani Enterprises and Adani Transmission have already approved raising $2.5 billion (Rs 21,000 crore) by selling shares to eligible institutional investors. Adani Green Energy’s board may also approve raising $1 billion in a week or two. In this way Adani Group can raise $ 3.5 billion. The capital raising process may be completed in the second quarter (July-September) of the collection current year. Investors from Europe and West Asia have shown good interest in it. Some of the existing investors may accept the offer and some new investors may also join.
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