Adani Group Overcomes Adversity: Record Profits, Ethical Practices, and Rebuilding Trust Amidst Allegations

Gautam Adani: We must refrain from dwelling on the past but rather learn from it and progress. The present is such an opportunity and we must make the most of it. Exactly a year ago, the New York-based short seller firm, while presenting a so-called research report, had made public a compilation of allegations against the Adani Group. The term “compilation” was used because the allegations had previously been made by our adversaries at different times. However, it was essentially a carefully crafted document containing selectively presented half-truths derived from disclosed and publicly available information. We unequivocally reject these allegations.

Typically, the impact of short-selling attacks is confined to financial markets, but this was a unique two-pronged attack – one financial and the other political. Both the areas influenced each other. The lies against us, aided and abetted by some in the media, were so effective that the ground realities of our portfolio were being eroded. This was because capital markets are generally more emotional than rational.

More disconcerting was the impact on thousands of small investors who were losing their hard-earned savings. From a national perspective, there was concern that the success of our adversaries’ plan could lead to a domino effect, affecting critical infrastructure assets from ports and airports to the power generation-supply chain. This would have been a dire situation for any country. Fortunately, through divine intervention and the collective efforts of our colleagues, we navigated through this crisis.

In response, we grounded our strategy in a methodology based on transparent facts and truth, a principle we have adhered to for decades. Our initial decision was to safeguard our investors. Despite the fully subscribed FPO worth Rs 20 thousand crores, we chose to return that amount to the investors. This unprecedented step in corporate history underscored our commitment to investor welfare and ethical business practices.

Amidst the foggy environment of this conflict, our most potent weapon was the availability of ample cash capital. By pre-paying Rs 17,500 crores of margin-linked financing to banks, we liberated the shares of the company and shielded our portfolio from market volatility. Taking responsibility for handling these adverse situations, I urged my colleagues to concentrate on running the businesses. The success of this approach is evident in the record-breaking 47% increase in profits in the first half of the current financial year.

Additionally, we initiated an extensive engagement program for our financial and non-financial stakeholders. The finance team alone conducted nearly 300 meetings across the globe in the first 150 days, ensuring the affirmation of ratings for 104 institutions by nine rating agencies. We engaged with banks, fixed-income investors, wealth funds, equity investors, JV partners, and others to rebuild trust and confidence.