In the aftermath of the release of the Hindenburg report, India’s Adani group has reportedly halved its revenue growth target, according to a report by Bloomberg. Additionally, the company is looking to scale down fresh capital expenditure.
Gautam Adani’s conglomerate has tapered its revenue growth to 15 per cent to 20 per cent for the next financial year, down from the previous target of 40 per cent.
The idea behind managing the expectations regarding revenue growth is to rebuild investor confidence, the publication added.
Though Bloomberg said Adani group will be scaling down capital expenditure, the company refuted such claims last week when Mint carried a report claiming the same.
The report claimed that Adani group was planning to use the cash in hand for capex and to meet payment deadlines, amounting to $300 million over the next six months.
However, on the same day, the group released a statement saying it was in talks to prepay all loans backed by pledged shares.
“False report, on the contrary Adani Group is moving to prepay all LAS (Loans Against Shares) finance,” a spokesperson for the group said in an emailed statement to Reuters.
After the Hindenburg report came out, Adani and its affiliate companies have lost more than $120 billion in market value so far.
The Hindenburg report accused the Adani group of stock manipulation using tax havens whilst having unsustainable debt.
Furthermore, the company shelved its plans of releasing over $122 million in funds through the first-ever public sale of bonds.
The decision came days after Adani Group called off its $2.5 billion share sale. Gautam Adani, in a video released, said the decision was taken with the interest of investors in mind.
(With inputs from agencies)
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