Adani Group plans to trim its capital spending while providing more collateral in the form of stock pledges to lenders, a news portal reported earlier today. At Adani, the capex is being reconsidered. In certain of the businesses, the group may scale back its capital expenditure plans. Therefore, they may consider a time frame of 16 to 18 months for that quantum of growth in specific firms rather than planned growth over a period of 12 months, according to the research.
Additionally, the domestic lenders of Adani Group do not intend to prevent the conglomerate from using authorised but unused credit lines out of concern that doing so might backfire and result in defaults. False story, the Adani Group is really moving to prepay all LAS (Loans Against Shares) funding, according to a statement sent by a representative to Reuters via email.
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After US short-seller Hindenburg Research last month voiced concerns about the group’s level of debt and usage of tax havens, shares of Adani continued their freefall, with the conglomerate’s cumulative market value loss surpassing $110 billion.
Adani, who overtook Bill Gates as the second richest man in the world last year, is no longer among the world’s top ten richest people after Hindenburg accused his businesses of defrauding investors by inflating sales and stock prices. Investors plunged Adani shares in the devastating aftermath of the Hindenburg report, and the group’s flagship company, Adani Enterprises, was compelled to postpone a $2.5 billion share sale last week.
The Adani group has responded to the criticism in-depth and denied any wrongdoing, but this hasn’t been able to stop the relentless decline in its stock price.
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