Adani-Hindenburg issue: How Gautam Adani is planning to win back investors 

HIGHLIGHTS 

• Adani Group is planning to hold a road show in Singapore 
• The move is aimed at winning back investors' confidence 
• The roadshow will happen in Singapore on February 27 

The Adani-Hindenburg issue has not only affected the company but it has also led to loss of investors’ confidence in the Adani Group. In order to reassure investors, the Gautam Adani-led conglomerate is planning to conduct a fixed-income roadshow next week, reported Reuters. The move is aimed at bringing back investors and restoring their confidence in the aftermath of a US short-seller report. 

A roadshow is said to happen in Singapore on February 27 and it will see participation from Adani Group Chief Financial Officer Jugeshinder Singh. Post the roadshow, similar confidence-building meetings will be held in Hong Kong on February 28 and March 1. 

Barclays, BNP Paribas, DBS Bank, Deutsche Bank, Emirates NBD Capital, ING, IMI-Intesa Sanpaolo, MUFG, Mizuho, SMBC Nikko and Standard Chartered Bank are reportedly organising the bank’s next week's roadshow. 

The move comes after Hindenburg Research, a US-based short seller, accused the Adani Group of stock manipulation and fraud through a wave of shell firms. The report, published on January 24, has caused massive mayhem in Adani stocks as some of the companies have lost nearly 60-70 per cent in market capitalisation. Seven listed firms led by Gautam Adani have lost nearly $140 billion in market value. 

Adani, however, has rejected the allegations and denied wrongdoing. 

According to Adani Group, of the 88 questions raised by Hindenburg, 65 were about listed firms, six were about media reporting, and the rest were about family offices. The group CEO recently claimed that the Adani group has already provided disclosures on all 65 queries asked by Hindenburg on January 24. 

This is not the first time when Adani is doing something to win the confidence of investors. Earlier, Adani Group had said that the company has strong cash flows and its business plans were fully funded. 

In an effort to allay investor concerns, Adani already spoke with bondholders earlier this month where group executives discussed plans to refinance some of the company's units as well as to fully prepay all loans secured by shares. 

Also Read: LIC's investment in loss, Adani out of top 25 rich list: The impact of Hindenburg report