Billionaire Gautam Adani-led Adani Group has reportedly slashed its revenue growth targets and capital expenditure. Just days after the Hindenburg Research report rocked havoc, the Adani Group has reportedly halved its mentioned targets.
According to a report in Bloomberg News, the Adani Group is now expected to shoot for revenue growth of 15 per cent to 20 per cent for at least the next financial year. The expected figures are down from the original target of 40 per cent.
The report adds that “holding back on investments for even as little as three months could save the conglomerate as much as $3 billion.” Before this update, the Ministry of Corporate Affairs in India also reportedly started a preliminary review of Adani Group’s financial statements.
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For those unfamiliar with the finer nuances, the Hindenburg Research report, published a couple of weeks back, alleged fraud and stock manipulation by the Adani Group entities like Adani Enterprises and so on. While the group refuted all such allegations, the ripple effect of the report left the stock crashing in the Indian boruses as the Adani Group also withdrew its Rs 20,000 crore follow-on public offer (FPO).
However, as per last updates, some of the Adani Group stocks also revived slowly, eventually, leading to the National Stock Exchange (NSE) removing some of the group’s entities from its ASM framework. It must be noted that as per experts, the Indian boruses add companies in their ASM framework in order to curb additional volatility and to keep them under surveillance.
