Sagar Adani, Gautam Adani’s nephew and the executive director of Adani Green Energy, is responsible for handling the conglomerate’s energy business and finance. He is also credited for establishing the Adani Group’s entire solar and wind portfolio. In a recent interview, Sagar Adani has opened up on the Hindenburg crisis. He has thrown light on how the Hindenburg report has impacted Adani Group’s business and how the global conglomerate was able to recover from the situation.
The Adani Hindenburg Case:
The Hindenburg Report served as a massive blow to the Adani Group’s business. It caused the conglomerate’s business to suffer severely. A lot of business operations had to be halted. Various investors started losing faith. The company also lost millions in share value overnight. New mergers and acquisitions could not take place. The accusations were so severe that the SEBI had to call in to investigate the matter. The Adani SEBI probe continued for a year. However, no such strong proof was found.
Sagar Adani’s Take On The Hindenburg Report:
As per Sagar Adani, the Hindenburg report and the Adani SEBI report came as a huge shock to
the people. The report was an accumulation of everything that was alleged against the company over the past decade. It did cause a severe blow to the business. However, the group still maintained a consistent approach and it tried to carry out its business operations in the best way possible even during times of crisis.
When asked about the existing controversies on account fraud and stock manipulation, Sagar Adani mentioned that the company has been working in the regulatory context of SEBI and in a market like India where everything is closely monitored, these allegations are completely baseless. Even after months of Adani SEBI probe, nothing was found. This has enhanced the trust of the people in Adani Group’s business.
The Role of the Investors:
Sagar Adani mentioned that it was because of the trust that the investors showed in the Adani Group’s business, it was able to recover from the situation. The company has the most diverse institutional holdings and long-term equity in the portfolio. The business has long-term players like Qatar Investment Authority. It has been in partnership with France TotalEnergies who have been an active investor in the Group’s business.
The sovereign wealth also helped to maintain a consistent flow of cash. The company is also associated with multiple small institutional investors. There are corporations like IHC. Some of the largest Middle East companies have also been investing in the Group’s assets. That way, the group has been able to bring all kinds of investors under its platform. This helped the company in carrying out its business operations even during the Adani crisis.
How Did The Group Win The Trust Of The Investors?
Once the report was released, the Adani Group brought all its investors together and explained the situation in detail. Upon hearing what the Group had to say, most of the investors became comfortable and decided to continue their partnership with the global conglomerate. In fact, the strategic long-term global equity partners have doubled their investment in the Adani Group of Companies post the Adani SEBI probe.
By investing in the Adani Group companies, the investors have been able to earn an excellent return from their investments. They have also been able to make the most out of the decisions they made by trusting the Adani group even during the crisis. The group has also allowed investors to invest in assets that have long-term stability. This includes roads, railways, ports, airports, transmission lines, and data centres. All these assets and long-term assets can add to the profitability of the investors.
Sagar Adani also mentioned that the Group’s target investors have never been the ones who look for quarter-on-quarter results and determine the investment potential. Instead, its target investors are the ones who look for a long-term horizon. This nature of Adani Group has again contributed to the success of its business operations. It has been able to maintain its business events during times of distress and turmoil.
Conclusion:
Yes, the Adani Hindenburg report did give the Adani Group’s business a setback. However, the group was able to get back to its original form and carry out its business operation. In the upcoming years, we will get to witness the Adani Group bring about more developments in the country, leading us to the path of success. With its constant efforts, our country will also be able to achieve economic stability in due course.
