After $135-billion wipeout, Adani Group plans multi-pronged comeback

Almost a month after a bombshell short seller report lopped off over $135 billion in market value from Gautam Adani’s empire, the billionaire has hired top-shelf US crisis communication and legal teams, scrapped a $850 million coal plant purchase, reined in expenses, repaid some debt and promises to repay more.

The ports-to-power conglomerate helmed by Adani — who used to be Asia’s richest person — is hoping to claw back the narrative with this playbook and calm jittery investors and lenders after US-based Hindenburg Research on Jan. 24 accused it of accounting fraud, stock manipulation and other corporate governance lapses.

The Adani Group denies these allegations.

Adani and his aides have been in damage repair mode ever since. Besides a campaign to portray themselves as responsible borrowers with prepayments and on-time payments of debt, executives have also kicked off a series of meetings to pacify overseas bondholders, who were tapped by the tycoon for more than $8 billion funding in recent years.

Reflecting the group’s realization of the severity of the hit to its image, it has brought in Kekst CNC as a global communications advisor, Bloomberg News reported Feb. 11. The public relations firm co-headquartered in New York and Munich is known for its work with other corporate blow-ups in recent years, like WeWork Inc.’s valuation implosion in 2019. 

“Situation Room”

Kekst’s mandate is to help the group regain investor trust by laying out the proper context, not just on the Hindenburg allegations but other concerns that have swirled around the fundamental strength of the business, a person familiar with the matter said. 

Kekst is working with Adani’s C-suite and communications team, and could put them through a “situation room” — the firm’s term for a simulated crisis in which executives are bombarded with tweets, calls from journalists and other stressful developments, said the person, who asked not to be named as they’re not authorized to speak publicly. 

The Adani Group has also engaged American law firm Wachtell, Lipton, Rosen & Katz to fight back against the short seller’s claims, the Financial Times reported citing unnamed sources. A spokesperson for Adani Group didn’t immediately respond to a request for comment. Kekst declined to comment, while Wachtell didn’t respond to requests to comment.