MUMBAI: Adani Group, led by billionaire Gautam Adani, is set to embark on an ambitious spending spree, aiming to invest a whopping 7 trillion rupees ($84 billion) in infrastructure over the next decade. This move comes in response to the significant loss in market value the conglomerate faced earlier this year due to corporate fraud allegations raised by the US short-seller Hindenburg Research.
Jugeshinder Singh, the Group’s Chief Financial Officer, expressed the group’s desire to invest more but did not provide specific details during a press conference in Mumbai on Friday.
This substantial investment plan is part of Adani’s strategy to counter the damaging allegations made by Hindenburg Research in January. The short-seller accused the conglomerate of engaging in years of stock price manipulation and accounting malpractice, allegations strongly denied by the company.
Singh mentioned that the conglomerate plans to raise funds through bonds via high-yield papers and private placements. The funds will be raised through its subsidiaries, including Adani Ports and Special Economic Zone Ltd. and Adani Energy Solutions Ltd. Additionally, the Adani Group will inject capital to repay the bonds of its green energy arm maturing in September and December next year.
Shares of Adani Group witnessed a surge this week after the India Supreme Court concluded hearings related to the investigation into Hindenburg’s allegations, reserving its judgment on the matter. The recent announcement of over $500 million in financial assistance to Adani’s port terminal project in Sri Lanka by a US government development agency further boosted the conglomerate’s confidence.
By Bloomberg
