What Caused the Adani Group to Recover from The Hindenburg Crisis?

 



The journey of the Adani Group, one of the biggest Indian conglomerates, has never been easy. The conglomerate did have to come across a lot of hindrances on its journey towards achieving success. It even had to incur massive Adani debt. However, it did not let any obstacle pull it back. Instead, the business group continued to do its best and ultimately acquired the desired level of success.

 

The Hindenburg crisis:

 

One of the biggest setbacks the Adani Group experienced in its journey was the Hindenburg case, during which the conglomerate's business suffered a massive blow. The US-based short-seller Hindenburg Research presented a report accusing the Adani Group of various malpractices, including fraud and stock manipulation. This caused people from all across the world to raise concerns about the proceedings of the Adani Group. As a result, the businesses operating under the Adani Group received a setback. There were rumours of Adani debt everywhere. The investors were no longer interested in making huge investments in the proceedings of the Adani Group. A lot of investors even turned away from the Group's proceedings. This caused the project operations to come to a halt.

 

However, that was not the end for the global conglomerate. Instead, it maintained a resilient approach and continued its journey towards success. This was a really big move for the Adani Group as it exhibited its determination to achieve success. Because of the Hindenburg case, the Supreme Court called for a SEBI probe against the Adani Group. However, no such evidence was found against the conglomerate. Later, it was asked to appoint a special team to investigate the conglomerate's operations, but the Supreme Court did not find the need to do so. Instead, it dismissed the allegations against the Adani Group. This again caused the global company to get back on its toes and start operating its business operations with full force.

 

The Reasons Behind the Comeback:

 

Now, there were quite a few reasons which allowed the Adani Group's business operations to continue even with the ongoing Hindenburg crisis. Here are some of the major reasons:

 

The diversified portfolio: This is undoubtedly the main reason that caused the Adani Group to survive the blow it received during the Hindenburg crisis. Because of the diversified nature of its portfolio, the Adani Group could carry out its business operations without the slightest hindrance. The conglomerate had never been focused on one particular business sector. Instead, it has branched out and taken control over some of the most crucial sectors, including logistics, renewable energy, etc. That way, even if one or two of its businesses incurred a loss, the other businesses continued operating. This helped the Adani Group maintain a balanced approach and acquire the exact level of success it deserved.

 

Sale of dollar bonds: This is a big step taken by the Adani Group after the Hindenburg crisis. It decided to acquire funds by selling dollar bonds of 500 million USD. By doing so, it has again been able to win back the investors who were earlier confused regarding whether they should be investing in the Adani Group. This also caused the business group to acquire the necessary funds for its other business operations. This was a profitable venture for the conglomerate. It allowed the business to carry out its operations smoothly. With the funds received, the Adani Group could also start a new project, offering the global conglomerate the desired profitability.

 

Support from existing investors: This is another bigger reason why the Adani Group fought back from the Hindenburg situation. Certain investors never lost faith in the various proceedings of the Adani Group. This includes big investors like Qatar Investment Authority and GQG Partner. These investors continued making investments in the various proceedings of the Adani Group. This helped in the continuance of the operations of the subsidiaries, and they did not have to suffer from loss of funds. Seeing big investors retain their trust in the conglomerate, many other investors were also driven to invest in the business group.

 

And this is how the Adani Group recovered from the Adani debt and returned to its former state of glory. This shows the Group’s resilience. 

 


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