“SIGNIFICANT REPERCUSSIONS”
The group said the action had led to “significant repercussions”, including “international project cancellations, financial market impact and sudden examination from strategic partners, investors and the public”.
That included in Kenya, where President William Ruto said the Adani Group would no longer be involved in plans to expand the East African country’s electricity network and its main airport.
The Adani Group was to invest US$1.85 billion in Jomo Kenyatta airport and US$736 million in state-owned utility KETRACO.
Sri Lanka has opened an investigation into the local investments of the group, including a US$442 million wind power deal and an Adani-led deep-sea port terminal in Colombo, which is estimated to cost more than US$700 million.
With a business empire spanning coal, airports, cement and media, Adani Group has weathered previous corporate fraud allegations and suffered a similar stock rout last year.
The conglomerate saw US$150 billion wiped from its market value in 2023 after a report by short-seller Hindenburg Research accused it of “brazen” corporate fraud.
Adani denied Hindenburg’s allegations and called its report a “deliberate attempt” to damage its image for the benefit of short-sellers.
Adani Group’s rapid expansion into capital-intensive businesses has raised alarms in the past, with Fitch subsidiary and market researcher CreditSights in 2022 warning it was “deeply over-leveraged”.
Adani, who was born to a middle-class family in Ahmedabad, Gujarat state, dropped out of school at 16 and moved to Mumbai to find work in the financial capital’s lucrative gem trade.
After a short stint in his brother’s plastics business, he launched the flagship family conglomerate that bears his name in 1988 by branching out into the export trade.
Source: CNA
