NEW DELHI: Most Shares of the Adani Group rejected after people familiar with the matter said the conglomerate has cut its revenue growth goal in half and plans to postpone new capital expenditures in the aftermath of a violent attack by short sellers.
Adani Green Energy Ltd., Adani Total Gas Ltd. and Adani Transmission Ltd. decreased by the limit of 5%. The flagship Adani Enterprises Ltd. has fluctuated between gains and losses.
The group will now target 15% to 20% revenue growth for at least the next fiscal year, down from the 40% growth it previously forecast, the people said, who do not want to be named as the discussions are private . Capital spending plans will also be curtailed, they said, as the group prioritizes financial health over aggressive expansion.
“These moves will help the group preserve more capital and retire debt,” said Sameer Kalra, founder of Target Investing. “This will provide a cushion for a few quarters, but headwinds from both Hindenburg and slowing global growth remain.”
The ruling ports conglomerate is focusing on preserving cash, repaying debt and recovering pledged shares as it attempts to undo the damage caused by Hindenburg Research’s damning January 24 report. Accounting fraud and inventory manipulation concerns wiped out more than $120 billion from the market value of the Adani empire.
Moody’s Investors Service has cut its prospects for Adani Green Energy and three other companies backed by Indian tycoon Gautam Adani, citing the conglomerate’s plummeting stock price.
Adani Green Energy Ltd., Adani Total Gas Ltd. and Adani Transmission Ltd. decreased by the limit of 5%. The flagship Adani Enterprises Ltd. has fluctuated between gains and losses.
The group will now target 15% to 20% revenue growth for at least the next fiscal year, down from the 40% growth it previously forecast, the people said, who do not want to be named as the discussions are private . Capital spending plans will also be curtailed, they said, as the group prioritizes financial health over aggressive expansion.
“These moves will help the group preserve more capital and retire debt,” said Sameer Kalra, founder of Target Investing. “This will provide a cushion for a few quarters, but headwinds from both Hindenburg and slowing global growth remain.”
The ruling ports conglomerate is focusing on preserving cash, repaying debt and recovering pledged shares as it attempts to undo the damage caused by Hindenburg Research’s damning January 24 report. Accounting fraud and inventory manipulation concerns wiped out more than $120 billion from the market value of the Adani empire.
Moody’s Investors Service has cut its prospects for Adani Green Energy and three other companies backed by Indian tycoon Gautam Adani, citing the conglomerate’s plummeting stock price.
