The embattled Adani Group plans to trim capital spending plans after it had to scrap fundraising efforts in the wake of short-seller Hindenburg Research’s scathing report into the conglomerate, Mint reported, citing people with knowledge of the matter.
(Bloomberg) — The embattled Adani Group plans to trim capital spending plans after it had to scrap fundraising efforts in the wake of short-seller Hindenburg Research’s scathing report into the conglomerate, Mint reported, citing people with knowledge of the matter.
The Indian group could moderate its capex plans in some businesses and target growth over 16-18 months, rather than 12 months previously, one of the people told Mint. It will also use alternative sources of funding, including internal cash, so-called promoter equity funding and private placements to invest in projects, according to the report.
Separately, Mint reported that Indian banks will continue to let Adani Group draw on unused credit lines to avoid sparking a default, citing unidentified bankers. The newspaper estimated that the group has about $1.5 billion of unused credit with domestic banks.
The market value of billionaire Gautam Adani’s companies has slumped by almost half since Hindenburg Research released a report on Jan. 24 accusing the conglomerate of stock manipulation and accounting fraud. The group has denied Hindenburg’s allegations of corporate wrongdoing and threatened legal action.
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