Reports have surfaced that Australia has been affected by the continuous decline in Adani Group’s share values.
Reports have surfaced that Australia has been affected by the continuous decline in Adani Group’s share values. Adani’s collapse has also hit the country’s pension savings funds. According to a report published by the Guardian, “Australia’s $243 billion Future Fund is set to strengthen the Commonwealth’s long-term financial position. This appears to include government employees in Queensland to employees working at the Commonwealth Bank.
Similarly Brisbane-headquartered Australia Pension System has more than $200 billion in assets. These funds had invested millions of dollars in six Adani companies before the report on the Adani Group came out. Meanwhile, Adani Group shares have been on a downward spiral since the Hindenburg report.
Like Australia, KLP, Norway’s largest pension fund, had invested. It sold a large portion of its holdings due to a slump in Adani Group shares. Not only this, there are many foreign companies investing in the Adani Group, what is their position,” the Guardian report questioned.
Also, “Since last January 24, Adani Group’s shares have lost a total of $134 billion in market value. The group’s market capitalization (m-cap) has fallen below $100 billion. In particular, Adani shares have lost 60 percent value in the last one month. As a result, the pension amount of Australian companies has become questionable.
In this regard, Vilwan Dibol, a market value critic, said, “Investments made in Adani Group companies have been declining recently. In particular, Adani Group funds have been used for coal expansion projects. That pension money invested by Australia has been used for expansion projects. Adani Group failed to see that the investment made here was at risk for many years. This was outlined in the Hindenburg Report.
– J. Prakash