Adani Group Chairman, Gautam Adani, Reflects on Resilience and Growth a Year After Short-Seller's Attack
Exactly a year ago, the Adani Group encountered a unique two-dimensional attack - a financial assault coupled with political implications.
Ahmedabad, India: In a statement released on the anniversary of a short-seller's attack on the Adani Group, Chairman Gautam Adani reflects on the unprecedented challenges faced by the conglomerate and outlines the strategies that have led to its resurgence and growth.
Exactly a year ago, the Adani Group encountered a unique two-dimensional attack - a financial assault coupled with political implications. Gautam Adani acknowledges the impact of such attacks, noting that while they typically affect financial markets, this particular situation extended into the political space, creating a challenging environment.
The false allegations, fueled by some media outlets, led to a substantial erosion of the market cap and affected small investors. Adani highlights that, had the detractors' plan succeeded, critical infrastructure assets, including seaports, airports, and the power supply chain, could have faced dire consequences for the country. However, he credits the strength of Adani Group's assets, robust operations, and high-quality disclosures for withstanding the assault.
To protect investors, Adani Group made the unprecedented decision to return the funds raised through a Follow-on Public Offering (FPO) of INR 20,000 crore. Additionally, the group fortified its financial position by raising an additional INR 40,000 crore through stake sales to reputable global investors.
Adani emphasizes the importance of liquidity as a significant weapon in navigating the crisis. The group pre-paid INR 17,500 crore of margin-linked financing, insulating its portfolio from market volatility. This move, along with a focus on business operations, led to a record-breaking EBITDA growth of 47% in the first half of FY24.
Engaging extensively with stakeholders, including financial and non-financial, became a priority for Adani Group. Adani points out the necessity of transparently outlining facts and telling their side of the story to counter negative campaigns effectively.
While reflecting on the past year, Adani acknowledges a fundamental weakness in outreach mechanisms and a lack of proactive engagement to counter distorted narratives. He underscores the importance of engaging effectively with non-financial stakeholders to prevent the spread of distorted perceptions.
Despite the challenges, Adani Group remained committed to growth, launching key projects and expanding its shareholder base by 43%. Adani concludes by expressing confidence in India's institutions and reaffirms the group's unwavering resolve to contribute to the country's growth story.
The full statement can be accessed here.
