India’s Adani Group is currently in the process of considering the divestment of its stake in Adani Wilmar, a joint venture with Singapore-based Wilmar International. According to Jugeshinder Singh, the group’s chief financial officer, a decision on this matter is expected within the next three months, as disclosed on Friday.
“We are currently studying whether to keep or divest Wilmar stake,” Singh said on the sidelines of an event in Mumbai.
The group led by Gautam Adani currently possesses a 44% stake in the fast-moving consumer goods joint venture. According to a report by Bloomberg News in August, the Adani family has been contemplating the potential sale of its stake for several months. The report suggested that the billionaire and his family might retain a minority stake in a personal capacity.
In November, Adani Wilmar incurred a loss for the second consecutive quarter.
Following a January 24 report by U.S. short-seller Hindenburg Research, which expressed concerns about debt levels and the utilization of tax havens, the Adani Group is in the process of recovering. The report led to a substantial decline, erasing almost $147 billion in market capitalization.
While shares of its affiliated companies have experienced a rebound, their value is still approximately $120 billion lower than before.
The Securities and Exchange Board of India (SEBI), acting on directives from the Supreme Court, is presently conducting an investigation into the group.
Adani Wilmar shares, reflecting a 45% decline year-to-date, concluded Friday with a marginal 0.1% decrease.
