Adani, who has been flying the flag in industries ranging from ports to mining and topped the list of Asia’s richest men, has laid out a plan for how to recover from the downturn.
On January 24th, Hindenbach of the United States issued a report alleging that Adani Group shares were overpriced and fraudulently committed. As a result, Adani Group shares fell by $132 billion.
Adani Group, which is facing a series of declines in the stock market, has devised a strategy of how to recover immediately. For this, the assistance of the US-based Crisis Response and Legal Committee has been sought.
The Adani Group has reportedly sought advice from the US bailout firm on scrapping an $850 million coal plant, curbing spending, repaying some debt and promising to pay off some debt sooner.
Adani, which is involved in a range of industries from mining to power, will focus on recovering quickly from a slump following a January 24 report by Hindenberg Research and calming jittery lenders and investors.
The report accused the Adani Group of malpractice, stock market fraud and other corporate malpractices. But the Adani Group has denied all the allegations.
Ever since the issue came to light, Adani and his aides have set about fixing it. Presenting themselves as responsible borrowers by prepaying some loans, promptly disbursing loan balances, investing nearly $8 billion in several companies of the Adani Group, the executive committee leaders have been holding regular meetings with investors from around the world who have been shaken by the current news.
Adani Group is well aware of the severity of the stigma attached to it. For this reason, an English media has reported that it has hired an international communication consulting company called Gext CNC of America.
Adani Group believes that the New York-headquartered company will be able to handle and emerge from the crisis situation of the Adani Group very smoothly as it has been working with companies that have been in crisis recently.
It is also said that the main task will be to restore the old confidence of the investors through better performance.
Gext is said to be in consultation with Adani’s C-suite and telecoms team to assess the current situation, and the Adani Group is sharing anti-group tweets, calls from journalists and other incriminating information.