Adani Maps Comeback Strategy After $135 Billion Hindenburg Rout

in now from that bombshell report, those allegations of course which have roiled equities and taken such a given taken so much out of in terms of market cap of those group of companies stocks. Yes, it is actually wiped out around 130 billion odd dollars from the market capitalization and they had been growing and he was always in the center stage for their rapid diversification and now they are trying to script a comeback strategy and this comeback strategy would include to cool off the investors by sending the credit report saying or rather reiterating they have enough cash and cash reserves to meet all this payments which is coming and they have also said that they have pre paying someone and they have also released some pledges to you know restore confidence and they are also cutting short of the capex and they are also lowering the revenue target from a high 30 to 40 percent to 50 to 20 percent and they are also picking and choosing their battles and they are not going for an aggressive M&A deals. So, we last one is like from DP power which is 700 odd crores deal they said they are not doing so what their stand is if they are not legally bound to anything which means they have not signed that definitely to agreement they would not be pursuing it. So, which is like a cash conserving measure and telling investors that we are not spending cash and we are conserving cash and we have enough cash reserve to you know make some repayments some prepayments and so don't worry this is a kind of a message they are giving to the market. Sanjay, I think the Dhoni may have a harder time that convincing some of these ESG investors to return. Very interesting point that is going to be like really a critical thing which they will have to address because many you know global investors now will be you know adding more you know due diligence when before giving any such kind of green bonds. So, accessing that kind of bonds would be an issue.

So, originally if you recall we had you know reported many you know grand plans to tap these green bonds green market but now that will be an issue. So, many ensure us what we pick up is that they voluntarily say that we will not be touching that anymore and some you know high profile investors already exceeded from those stocks which is going to be which that can make really you know the road ahead for Adani very tough in the you know matter of ESG that one will have to wait and watch how they are going to devise an action or rather they will be only sticking to private placement route which we last week they have said that they will be raising one billion dollar via private placement directly talking to investors and avoiding bankers. Sanjay, what about the outlook from money managers what's changed? So, brokers and analysts are now started telling that they are slightly convinced about after the you know publishing of credit report they think that they have enough cash you know reserves to meet the obligations and the payment repayment dates they have also cross checking and one large one five hundred million dollars which would be falling in March they have said that they will be pre-paying. So, the analysts are now and then the stock almost stock markets are back into you know the safest territory. So, they are slightly convinced but again it's a new week you know new day one will have to wait and watch how the story is evolving how the stocks are reacting to you know those ESG concern and the reports which is surfaced last week and Supreme Court is also trying to get a panel to investigate this all will weigh into stocks and their reactions.

Bloomberg