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Adani AGM 2024: Gautam Adani Addresses Hindenburg Incident
At the 32nd annual general meeting, Adani Group Chairman Gautam Adani addressed the Hindenburg incident, dismissing the short-seller’s over 100-page report as “baseless accusations.” He described the report as a two-sided attack that criticized the group’s financial standing and distorted information, dragging them into a political battlefield. Adani highlighted that the attack was timed to disrupt their Follow-on Public Offer.
Hindenburg Fiasco
Hindenburg’s report accused the Adani Group of stock manipulation and improper use of tax havens, triggering a sell-off in the conglomerate. However, an expert panel established by the Supreme Court found no conclusive evidence of stock manipulation but recommended regulatory improvements to protect investors. Adani claimed that the report, amplified by certain media segments, aimed to defame the group and erode their market value.
Financial Resilience
Despite the turmoil, the Adani Group raised an additional Rs 40,000 crore to cover debt repayments for the next two years. Adani emphasized their strategy to safeguard the portfolio against volatility by prepaying Rs 17,500 crore in margin-linked financing, improving the group’s net debt to EBITDA ratio from 3.3 to 2.2.
Commitment to Transparency and Growth
Adani highlighted the group’s dedication to operational excellence and transparent disclosures, validated by rating agencies and global investors like GQG Partners, TotalEnergies, IHC, QIA, and the US Development Finance Corporation.
Optimism for India’s Growth
Adani expressed optimism about India’s growth prospects, driven by the government’s infrastructure push. He noted the government’s 16% increase in infrastructure funding to over Rs 11 lakh crore for the current financial year, with annual spending tripling over the past five years. Adani stressed the crucial role of state governments in implementing these initiatives and positioned the company to benefit from ongoing economic and social programs.
Future Plans and Segment Updates
Adani outlined the group’s ambitious goals, including developing 30 GW of capacity in the next five years, sufficient to power nations like Belgium and Switzerland. Adani Green Energy revised its FY 2029-30 target from 45 GW to 50 GW, adding 2.8 GW this year, representing 15% of India’s total renewable capacity addition.
Passenger traffic at Adani-operated airports reached 88.6 million. The group aims to achieve a combined cement capacity of 140 million tonnes per annum by 2028, with Ambuja Cements playing a key role in projects like India’s longest sea bridge, the 21.9 km Mumbai trans harbour link.
For Adani Energy Solutions, the transmission order book stands at Rs 17,000 crore, and the smart metering order book has expanded to 228 lakh units.
Overall, Adani reiterated the group’s commitment to resilience, growth, and contributing to India’s infrastructure development.
