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The Adani group vs Hindenburg report saga has still not ended. The aftermath of this huge financial event is still unfolding. The value of Adani shares is down from 30-50%. The market still believes in Hindenburg's report. In this video, I’ve shared what is happening at Adani Group after the Hindenburg report.

If we look into the Hindenburg report then there are 3 points emerging from it. First is the allegation of stock manipulation. The second is another allegation of owning more than 75% of the listed companies. The third part is that the debt carried by the Adani group is much higher than what they are earning.

As for the first 2 allegations, the country's law administration is the final authority to comment and take action on this matter. But as for the last point, the Adani group has been strategizing to reduce its debt burden. For this Adani group did some road shows to raise capital in Hongkong, Singapore, and Dubai. They raised close to ₹15000 Crores from GQG partners which is an asset management company based out of the US. It has close to $90 Billion worth of assets under its management.

This gives a lot of confidence to other investors. The trust that was destroyed by Hindenburg is getting restored because of this. Simultaneously Adani Group is also paying off its debt. Simultaneously, the Adani group has put on hold its coal to PVC project in Mundra. PVC has a huge opportunity in India. Because out of 4 Mn tonnes of consumption of PVC in India, only 1.5 Mn tonnes are produced in India. The remaining 2.5 Mn tonnes are being imported. PVC is important because it is different from other kinds of plastics. PVC plastic can be used for decades, it can be used for sewage pipes, insulation pipes, and to make food containers.

As we move away from coal-based thermal power plants, PVC manufacturing is an alternative use for coal. This is not as polluting as coal to power. Adani already owns a coal mine in Australia. They can import coal from there and start producing PVC. This is a long-term game. They were putting together 34,000 crores in this plan. So, once this entire mood shift turns positive for the Adani group, then the Adani group may start working on this project.

As of now, Adani owns 6 airports in the country. They know that if they miss the opportunity to invest in Airports today then it will be difficult to invest later on. In this way, Adani Group is strategizing on which projects to pick up and which projects to hold back. The regulators are always taking several actions in the background. As of March 30, 3 Adani companies are put under the ASM surveillance list. Stocks under this list are to be picked cautiously by investors. This can be because o three reasons. First is price volatility, the second is volume volatility, and the number of unique pan cards trading these stocks.

In the end, I’ve shared takeaways we can draw from this entire scenario. Hope you find this video interesting and valuable.

About Me

I publish meaningful and valuable content on this channel. My aim is to make business news more accessible and easy to grasp. If you find my videos informative and insightful then make sure to subscribe and leave a comment. I’ll see you in the next video

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Chapters

0:00 - Intro
1:41 - Chapters
2:00 - Hindenburg report explained
3:20 - GQG Partners' investment
5:40 - Reducing debt levels
6:05 - Coal to PVC project suspension
6:57 - Importance of PVC
8:36 - Adani buying new airports
9:42 - Adani shares under ASM surveillance
11:55 - Takeaways
13:28 - Outro