On the Hindenburg anniversary, Gautam Adani says that his business Group has only become stronger. Gautam Adani has always termed the Hindenburg Report’s charge of stock manipulation and fraud as lies and a compilation of old and dead allegations. Within a year after the report by the US shorter seller hampered the image of the ports-to-power conglomerate with allegations of Adani Group controversies, the business group was back on its toes. It was able to recover from the losses that it suffered during the Adani Hindenburg crisis.
The Impact of the Hindenburg Report on the Business of the Adani Group
Gautam Adani said that the Hindenburg allegations have only made the Adani Group stronger as it continues to improve its asset base, launch new products, and make progress on its journey towards acquiring growth. In one of the leading newspapers, Gautam Adani said that the Adani Group has already raised INR 40,000 crores of equity by selling stakes in some of the major firms.
The company has also managed to repay INR 17,500 crore of margin-linked financing and reduce its existing debts.
The sustained focus on improved business operations has helped the Adani Group in acquiring the highest-ever quarterly profit in the second quarter of the current fiscal year. Most of the companies that are operating under the Adani Group have acquired immense success. The Group has always been committed to maintaining its growth momentum. It has made multiple investments in various projects. The company has also experienced an asset base growth of INR 4.5 lakh crore.
The Key Projects Taken Up by The Business Group
One year after the Hindenburg Report marked the launch of multiple key projects. This includes the setting up of the largest renewable energy park in the world in Khavda, Gujarat, the Dharavi redevelopment project, a new green hydrogen ecosystem, a new copper smelter, etc. The company has also been working on numerous international projects. This has allowed the business group to expand its horizon further and build an extraordinary place for itself on a global scale. The company has also succeeded in acquiring a lot of new investors for itself within a very short period.
The Initial Days of Crisis
The Hindenburg Report highlighting Adani Group controversies has brought about a huge blow to the success story of the Adani Group. It caused the Adani Group businesses to be seriously affected. The stock values of the companies operating under the global conglomerate began to fall right after the Hindenburg Report was released. A lot of investors stopped making investments altogether in the Adani Group.
Gautam Adani, who was initially ranked as the second richest person in the world at the start of 2020, slipped out of the top 20. Thousands of small business investors completely lost their savings. Had the Hindenburg report succeeded in making a point, the domino effect could have also crippled the critical infrastructure assets ranging from ports to airports and logistics. It could have been a catastrophic situation for the entire country.
However, because of the solid assets, the robustness of operations, and the transparency that it maintained, the business group was once again able to get back to its initial state of glory. Gautam Adani has also shown excellent resilience during times of difficulty. He was able to carry out all the business operations in the best way possible. He also made numerous investments, even with investigations ongoing.
The Present-Day Scenario
Today, the Adani Group is once again back on the list of the most reliable conglomerates in the world. It has earned the trust of investors from various corners of the world. The conglomerate is also currently working on some of the most prestigious projects in the world. It has been able to increase its asset base and build an impeccable reputation for itself. The company has also been able to bring about a change in the mind-set of the general public, who considered the Adani Group guilty. It has also been able to recover from most of the losses that it suffered and get back to a stable position.
Conclusion
In this way, even with Hindenburg trying to pull down the reputation of the global conglomerate with accusations of Adani Group controversies, the company was able to walk the path of success. The business group has succeeded in building an enormous empire for itself. It has also started to be known for its resilience and its extraordinary capabilities. Today, the company led by Gautam Adani is all set to become one of the largest business groups on a global scale. It has also been able to motivate millions of individuals with its success story.
