Adani Group to conduct roadshow in Asia to appease investors
What's the story
Investor confidence in Adani Group stocks and bonds is at an all-time low following a damning report by Hindenburg Research.
The embattled conglomerate will hold a fixed-income roadshow in Asia next week in an attempt to fight the negative impacts of the report.
The combined market capitalization of its companies has slipped below $100 billion since the report.
Context
Why does this story matter?
Adani stocks have been dragged through the mud since Hindenburg published the report. The US-based short-seller accused the group of accounting fraud, market manipulation using offshore shell companies, and overvaluing companies.
Although Adani Group has denied the allegations, the market is yet to believe the conglomerate's words.
The roadshow might help tackle some of the negative sentiments.
Roadshow
The roadshow will begin on February 27
Adani Group will hold a roadshow on February 27 in Singapore and in Hong Kong from February 28 to March 1. The roadshow will provide an opportunity to reach out to investors.
Barclays, BNP Paribas SA, DBS Bank Ltd., Deutsche Bank AG, Emirates NBD Capital, ING, IMI-Intesa Sanpaolo SpA, MUFG, Mizuho, SMBC Nikko, and Standard Chartered Bank have extended invitations to potential investors.
Foreign investors
Foreign investors are wary of investing in Adani stocks
Since the Hindenburg report, foreign investors have been wary of Adani Group stocks. The conglomerate's companies are being reviewed by global indices and are most likely to be pushed out of some influential ones.
Morgan Stanley Capital International (MSCI) has already cut the free float of Adani companies. We can expect further action in May.
Similarly, UK's FTSE Russell is also reviewing Adani stocks.
Boon
'Hindenburg report could be a blessing for Adani'
Meanwhile, economist Swaminathan Aiyar said the Hindenburg report could be a "blessing in disguise" for the Adani Group.
According to him, the report will slow Adani's speed and make his investors more cautious and diligent. "This could impose highly desirable financial discipline on Adani, to his own benefit," Aiyar wrote.
Hindenburg report "may have been a blessing 'quite effectively disguised,'" he added.
Supreme court
Supreme Court rejects plea to gag media
Despite its struggles, Adani Group and Gautam Adani are without their sympathizers.
ML Sharma, an advocate, had filed a plea in the Supreme Court to stop the media from reporting on the Adani-Hindenburg issue until the court pronounces its order on a committee to inquire into the matter.
The court, however, refused to pass a gag order on the media.