The government has allayed worries over the exposure of the state-owned LIC’s investment in the Adani Group following the effect of the Hindenburg report on its stocks.
Foreign investors are worried, while the exposure of public sector organizations to Adani remains within manageable bounds. French company TotalEnergies has postponed a project with Adani because an audit is still pending in the wake of accusations of market manipulation against the company.
The company that was meant to work with Adani to produce green hydrogen had announced a cooperation last year, but has not yet signed the agreement. It was intended to purchase a 25% interest in Adani New Industries, which aims to create a $50 billion green hydrogen ecosystem. However, TotalEnergies, which already has a $3.1 billion exposure to the Adani Group, has suspended that investment.
Adani lost $120 billion as a result of a stock price drop, despite the fact that it has refuted the maliciousness of the accusations made by Hindenburg Research. Despite a comeback, it was only able to reduce the losses to under $110 billion, and the road to recovery is still long. A UP-based discom has also canceled an order for 7,500 smart meters as SEBI and RBI assess the risk banks and stock market meltdown, respectively.
Elara Capital, a UK-based company that served as the bookmaker for Adani’s now-cancelled FPO and was also cited in the Hindenburg report, is also under investigation. According to reports, the Financial Conduct Authority of the UK has opened an investigation into the business where former British Prime Minister Borish Johnson’s brother was an independent director.
