Leading global asset managers, including BlackRock, State Street, Lombard Odier and Neuberger Berman, significantly raised their holdings of Adani Group dollar bonds in 2023.
BlackRock had doubled its position to $125 million, State Street witnessed a surge of over 50 per cent, Lombard Odier's holdings rose by 20 per cent to nearly $140 million, and Neuberger Berman elevated about 42 per cent to slightly over $40 million.
This shift in strategy reflected in the recovery in the fortunes of the Adani Group, which proactively addressed debt concerns, refinanced loans, and secured $5 billion in equity investments following the Hindenburg Research-triggered sell-off.
Earlier, the Hindenburg's allegations of fraud, as detailed in its January 2023 report, had led to a substantial market decline.
However, subsequent efforts by the Adani Group to manage debt and reinforce investor confidence have yielded positive results.
Most of Adani Group's 15 dollar bonds now trade above distressed levels, with the company accessing financing successfully.
Despite some investors selling, overall confidence in Adani entities remains solid.
S&P Global Ratings had also recently raised its outlook on Adani Ports & Special Economic Zone Ltd and Adani Electricity Mumbai to stable from negative.
Nayan Dwivedi is Staff Writer at Swarajya.
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