Adani Group: Can embattled India tycoon recover from $100bn loss?

India's Adani Group has seen its market value plunge after a US investment firm made fraud allegations against it. Can its ambitious growth plans survive?

How did the market rout unfold?

Until two weeks ago, the ports-to-energy conglomerate which operates seven publicly traded companies had a combined valuation of $220bn.But since 24 January, when short seller Hindenburg Research accused the group of "brazen" stock manipulation and accounting fraud, its valuations have nearly halved. The group's founder Gautam Adani has seen billions wiped off his personal wealth and has dropped out of the list of the world's top 20 richest people.

The Adani Group has denied the allegations, calling them "malicious" and "baseless" and says it plans have not changed. But investors are clearly still nervous.Gautam Adani, chairman and founder of Adani Group at the inaugural session of the UP Investors' Summit - 2018 in Lucknow Gautam Adani has seen billions wiped off his personal wealth.

On Monday, the group said in a statement that it would prepay loans worth $1.1bn, taken using shares as collateral, ahead of their maturity date next year. This, it said, was partly due to "continued market volatility" and to assure investors that the group's promoters would "prepay all shares-backed financing".

The announcement led to a rally in the flagship company's stock - on Tuesday, shares of Adani Enterprises closed 15% higher on the Bombay Stock Exchange.

Last week, the group also called off its secondary share sale. The 2.5bn it had raised was meant to pay off debt and fund projects, including airport renovation, expressway construction and an ambitious green hydrogen ecosystem.

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