GLOBAL - Asset management firms are reinforcing their confidence in Adani Group, with significant investments flowing into the conglomerate despite previous fraud allegations. BlackRock Inc (NYSE:BLK)., with bond holdings valued at $125 million, along with State Street Corp (NYSE:STT)., Lombard Odier, and Neuberger Berman, have increased their stakes in the company, signaling a market reassessment of Adani's financial health.
This surge in investor confidence comes after a challenging period for Adani Group, which faced fraud allegations by Hindenburg Research in January 2023. In response to the allegations, Adani Group undertook a series of strategic moves, including debt reduction and securing $5 billion in equity investments. These actions have yielded positive outcomes, with most of Adani's bonds now trading above distressed levels, a stark turnaround from their previous status.
The market valuation of Adani companies has witnessed a remarkable recovery, more than doubling since reaching their lowest point in February 2023. This rebound is partly attributed to S&P Global Ratings' improved outlook for Adani Ports & Special Economic Zone Ltd., which was upgraded due to strong cash flow projections.
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