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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