TotalEnergies suspends its hydrogen contract with the Adani group

Adani Group halves growth projection after fraud accusations

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Badly bruised by allegations of fraud made by Hindenburg Research report released three weeks ago, India’s Adani Group reportedly cut its revenue growth target in half. The group, which is struggling to maintain its credibility, also plans to reduce its investment expenditure.

“Adani Group will now target revenue growth of 15% to 20% for at least the next fiscal year, compared to 40% initially targeted,” Bloomberg reported yesterday (February 12). The news agency report cites unnamed sources familiar with the matter.

The report said the move was aimed at restoring investor confidence.

“The change shows how the ports-electricity conglomerate is focused on conserving cash, paying off debt and recouping promised stock as it scrambles to undo the damage a scathing Hindenburg Research report on January 24,” he said.

Adani is in damage control mode

Adani’s decision to cut capital spending will put the brakes on his aggressive expansion plans that were in the works until the Hindenburg crisis erupted. Quartz reported this earlier this month.

For example, the group plans to invest millions of dollars in the Indian aeronautical sector since 2020, which now seems unlikely. Likewise, the fate of its 50 billion dollars of green hydrogen the bet is now uncertain.

The Adani Group has been in troubled waters since January 24, when Hindenburg, a US-based short-selling firm, released its report. accusing the conglomerate of stock market manipulation.

While the Indian company has denied any wrongdoing, its investors don’t appear to have bought into its defense. Ten Adani Group Listed Companies lost over $100 billion at market value since January 24.

The published Bloomberg report may have added to their fears as key entities like Adani Enterprises and Adani Total Gas had fallen more than 5% at press time today.

To counter Hindenburg’s allegations, the Adani Group has just hired a US-based law firm, Watchell. Meanwhile, the Supreme Court of India hears petitions asking for an investigation against the coal-cement conglomerate.

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