Adani cuts growth target, capital expenditure to scale up strength

New Delhi: In a clever move to rebuild investor confidence, Adani Group halved its revenue growth target and decided to hold off fresh capital expenditure, says a report.

The group slashed its original growth target from 40 per cent expansion to 15-20 percent for the next financial year, The Indian Express reported.

This comes alongside its decision to scale down capital expenditure in order to bolster financial health.

A curb on investments for at least three months will help the company garner as much as $3 billion, which it can deploy to manage debt, the report said quoting the company insiders.

The revelation of Hindenburg continues to hit the group with its most stocks dropping at the Monday open.

Adani Green Energy Ltd., Adani Total Gas Ltd., and Adani Transmission Ltd spiraled down by the 5% limit.

The report said that Adani Group is currently focused on ‘conserving cash, replaying debt and retrieving pledged shares’, in its attempt to controlling the damage from the Hindenburg Research’s assault on January 24.

Following Hindenburg’ Research’s assault, Adani Group reportedly lost more than $120 billion in a stock rout.

In the aftermath of the stock fall, Adani Enterprises Ltd on February 1 shelved the $2.5 billion follow-on share offer.

Despite being fully subscribed the day before, the move came as part of averting mark-to-market losses for investors.

Meanwhile, reports say that Adani Group may hire a Big Four auditor to “to carry out a general audit,” in order to address the charges raised by Hindenburg.

Bloomberg News earlier reported that the group has hired hired public relations firm Kekst CNC to be its global communications adviser.