Adani Group unveils $84 billion investment plan following Hindenburg market setback

Adani Group, led by billionaire Gautam Adani, has announced plans to invest a whopping Rs 7 lakh crore in infrastructure projects over the next decade. This ambitious spending initiative mirrors the approximate market value the conglomerate lost earlier this year when facing corporate fraud allegations from US-based shortseller Hindenburg Research.

Jugeshinder Singh, the group's Chief Financial Officer, shared the investment vision with reporters in Mumbai on Friday, expressing the group's desire to enhance its investment activities. While specific details were not immediately disclosed, Singh's statements indicate a strategic effort to move beyond the damaging allegations made by Hindenburg Research in January, which accused the conglomerate of stock price manipulation and accounting malpractice. Adani Group has consistently refuted these claims.

In July, during an annual address to shareholders, Gautam Adani had already unveiled expansive expansion plans across the group's ports, energy, and infrastructure businesses. This proactive approach followed a period during which the conglomerate had scaled back on some non-core investments to bolster shareholder confidence and address debt concerns.

To fund these ambitious projects, Adani Group plans to raise capital through bonds via high-yield papers and private placements, leveraging its entities such as Adani Ports and Special Economic Zone Ltd and Adani Energy Solutions Ltd. Singh confirmed that the conglomerate would also inject funds to repay bonds from its green energy arm, maturing in September and December next year, possibly as early as July to avoid prepayment penalties.

This announcement had a positive impact on Adani Group's stock performance this week, with shares rallying after India's Supreme Court concluded hearings related to the investigation into Hindenburg's allegations, reserving judgment on the matter. 

Additionally, earlier this month, the conglomerate received a significant boost when a US government development agency pledged over $500 million in financial assistance for Adani's port terminal project in Sri Lanka—a move hailed by Adani's son as a “reaffirmation by the international community.”