Norway Wealth Fund Exits Adani: Ongoing Crisis in Indian Conglomerate

Norway Wealth Fund Exits Adani: Ongoing Crisis in Indian Conglomerate

Norway’s Sovereign Wealth Fund Exits Adani Group Over ESG Concerns

As the crisis surrounding the Adani Group continues, Norway’s $1.35-trillion sovereign wealth fund has announced that it has sold all its remaining shares in the conglomerate. This decision was reportedly made due to the group’s environmental, social and governance (ESG) concerns. The fund has been monitoring the Adani Group for years and had already divested from five of the group’s companies since 2014. However, as of the end of 2022, the Norwegian fund still held shares in Adani Green Energy, Adani Total Gas, and Adani Ports & Special Economic Zone, all worth millions of dollars.

Recently, the stocks of the Adani Group have been facing intense volatility, leading to a significant drop in the group chairman’s fortune. The crisis was triggered by an allegation made by US-based short-seller Hindenburg Research about the group’s improper use of offshore tax havens and high debt, which Adani denies.

Moreover, financial index provider MSCI has also announced that some Adani securities should no longer be considered as free float after market participants raised concerns about the eligibility of its indexes. The changes for Adani securities in the MSCI Global Investable Market Indexes will be announced later today.

In response to the MSCI statement, Hindenburg founder Nathan Anderson has viewed it as validation of their findings. Some Adani group shares had been rebounding this week, but saw a drop again today.

Stay tuned for more updates on the Adani Group crisis and its impact on the global market.

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