Norway's Sovereign Wealth Fund Divests Its Remainder Stakes In Adani Companies: Report

The fund had divested from five Adani companies since 2014 and at the end of 2022, it remained invested in three, including Adani Ports, the report said

Adani Group on Tuesday announced that it would start an independent investigation into the various accusations made against it in the Hindenburg Research Report.

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In another blow to Adani Group, Norway's $1.35-trillion sovereign wealth fund on Thursday said that it has divested virtually all its remaining shares in companies in recent weeks, reported news agency Reuters. The report cited remakers by the fund's head of ESG risk monitoring from a news conference. Christopher Wright, the fund's head of ESG risk monitoring said, “We have monitored Adani for many years (on ESG) issues, many on their handling of environmental risks…Since year-end, we have further reduced in Adani companies. We have no exposure left.”

The fund had divested from five Adani companies since 2014 and at the end of 2022, it remained invested in three, including Adani Ports, the report said, adding that the Norwegian fund owned shares in Adani Green Energy worth $52.7 million, Adani Total Gas for $83.6 million, and Adani Ports & Special Economic Zone for $63.4 million as of the end of 2022.

Adani Group stocks have been under stress since Hindenburg in its research report titled 'Adani Group: How The World’s 3rd Richest Man Is Pulling The Largest Con In Corporate History', questioned the accounting and corporate governance practices of Adani Group, and also raised the issue of heavy debt last week.

The allegations were strongly refuted by the Adani Group which said Hindenburg’s report is timed with a "mala fide intention" to damage Adani Enterprises FPO.

However, the company decided to withdraw the FPO amid the ongoing row over the Hindenburg Research’s report. 

The group’s chairman Gautam Adani in a video message said “After a fully subscribed FPO, yesterday’s decision of its withdrawal would've surprised many. But considering the volatility of the market seen yesterday, the board strongly felt that it wouldn't be morally correct to proceed with FPO.”

Adani Group announced on Tuesday that it would start an independent investigation into the various accusations made against it in the Hindenburg Research Report.