Adani Group firefights Hindenburg-inflicted damage: Roadshows in London, Dubai, US from today

Amid the Hindenburg row and the turmoil in the market, the Adani Group has decided to hold roadshows in Dubai, London and several cities in the US from today. The roadshows, which are to be held from March 7 to 15, will also be attended by Chief Financial Officer Jugeshinder Singh. The group had reportedly held roadshows in Singapore and Hong Kong too in February and earlier this month.

The firefighting by the conglomerate comes as it aims to muster up investor confidence that was drained following the US short-seller’s report accusing the group of stock manipulation, accounting fraud and other financial misdeeds. 

This round of roadshows comes after Adani saw the first major investment after the Hindenburg fiasco that wiped off billions of dollars of investor money. US boutique investment firm, GQG Partners, bought shares worth Rs 15,446 crore in four Adani Group companies, including Adani Ports and Special Economic Zone, Adani Green Energy, Adani Enterprises Ltd and Adani Transmission. 

Following the investment, eight out of 10 Adani companies, except ACC and Ambuja, were up on Monday. 

Rajiv Jain, Chairman of GQG Partners, in an interview explained the rationale behind the buy. He also told The Economic Times in an interview that India right now needs someone who can execute its infrastructure needs, and that the Adani Group is doing just fine. He said that his team also did a lot of due diligence with people who had worked with the Adani Group previously to get an idea of the culture of the place, and felt very comfortable with how the group has done. 

As per Kotak Institutional Equities, the sale of 2.5-4.1 per cent stake in the four listed companies should assuage concerns about the group’s ability to raise funding for the repayment of loans. It also stated that the group can potentially raise another $8 billion while maintaining majority control. 

Additionally, the conglomerate had organised roadshows in Singapore on February 27, and Hong Kong on February 28 and March 1. Adani reportedly held calls with bondholders earlier this month as it attempted to assuage investor concerns. Barclays, BNP Paribas, DBS Bank, Deutsche Bank, Emirates NBD Capital, ING, IMI-Intesa Sanpaolo, MUFG, Mizuho, SMBC Nikko and Standard Chartered Bank organised the company’s Asia roadshow.

Also read: Adani group pledged shares: GQG deal with 4 Adani firms to ease fund raising concerns, says Kotak

Also read: Adani-Hindenburg row: GQG chief Rajiv Jain explains why he put Rs 15,000 crore in Adani block deal

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