- Indian industrialist Gautam Adani is working on improving oversight of his conglomerate, the Financial Times reported.
- He's considering changes after allegations by a short seller sent Adani Group stocks plummeting.
Indian industrialist Gautam Adani is working on improving oversight of the companies that control his business empire, the Financial Times reported Tuesday, with his potential moves coming after last month's shocking report about Adani Group by short-seller Hindenburg Research triggered a stock rout.
The Adani Group founder told advisers he plans to appoint a financial controller to oversee his various trusts and other privately held companies, the FT reported, citing two unnamed people with direct knowledge of the discussions.
"The governance structure of the family office will become more like a public company, post this episode," one source told the FT.
Adani also suggested creating a board and hiring another group chief financial officer to look after the family side of the business.
The 60-year-old founder was aiming to address investor concern after Hindenburg alleged that Adani artificially inflated its market capitalization. It also criticised the "maze" of private companies and family trusts that control the conglomerate. Gautam Adani has denied the claims contained in the January 24 report.
The turmoil has driven down the group's market valuation by $120 billion. The FT reported last week Adani faced a margin call on a $1.1 billion loan. Stock in the group's largest listed company, Adani Enterprises, has lost roughly 45% since the report was released.
On Tuesday, Adani Enterprises shares rose, with Gautam Adani reportedly saying the slide in the price of Adani Enterprises shares was "temporary," with the remark coming as the flagship business swung to a third-quarter profit from a year ago.