Mobius reaffirmed his confidence in India. Last week, Mobius informed Bloomberg that he will increase his investment in India, claiming that the country’s “long-term potential of the market is tremendous.”
The recent decline in Adani Company shares hasn’t discouraged seasoned emerging market investor Mark Mobius, who refers to it as an “Adani problem” rather than an issue with India. He declared that he is still optimistic about India’s possibilities, calling them “amazing.”
Mobius reaffirmed his confidence in India. Last week, Mobius informed Bloomberg that he will increase his investment in India, claiming that the country’s “long-term potential of the market is tremendous.”
“It is an Adani group issue. India will continue to grow in strength. It’s a remarkable nation with remarkable prospects. I believe this incident is typical of those that occur in the capital markets, and it will pass “Informed Bloomberg, Mobius.
“We were not interested in Adani companies because they did not match our investment requirements, particularly with regard to debt,” he added in reference to the now-canceled Adani FPO.
Regarding the question of canceling the FPO, Adani said that the Board “strongly felt that it would not have been morally acceptable to proceed with the FPO” in light of the market volatility experienced on February 1.
“Everything is secondary to my investors’ interests, which are my first priority. Therefore, we withdrew the FPO to protect investors from potential losses “Added he.
Before some pledged shares in Adani Green Energy, Adani Transmission, and Adani Ports & Special Economic Zone could be released, the promoters of the Adani group companies paid back $1.114 billion.
In view of recent market volatility and as part of the promoters’ ongoing resolve to minimize overall promoter leverage backed by shares of the Adani listed company, this has been done.
Concerns regarding their exposure to the Adani Group have been allayed by large lenders including SBI and the state insurer Life Insurance Corporation of India.
SBI had revealed that as of the quarter that ended in December, their total loan exposure to the Adani Group was 0.88 percent, or Rs 270 billion, of all loans. No loans against shares have been given to the group, and the majority of these loans are secured by assets with a positive cash flow.
