In the midst of the Hindenburg controversy, there is a big stir in Elara Capital, a UK company associated with the Gautam Adani Group. Lord Jo Johnson, the director of this company, has resigned from his post. Jo Johnson is the younger brother of former UK Prime Minister Boris Johnson. He joined Elara Capital last year. Elara Capital is the same company that has been found suspicious in the Hindenburg report.
Capital market refers to a company that raises or manages funds for Indian companies. The company was one of the 10 bookrunners of Adani Enterprises’ follow-on public offer (FPO).
Amid continuous fall in share value. on February 1st, Adani Group made the surprising decision to cancel its fully subscribed Follow-on Public Offer (FPO) of Rs 20,000 crore and asked to return the investors’ money.
On January 24, US-based short-seller firm Hindenburg released its 106-page report on the Gautam Adani group. Elara Capital is mentioned at many places in this report. The report alleged that Mauritius-based fund managers, run by Elara Capital, were part of a scheme to manipulate the share price of listed companies of the Adani group. However, the Gautam Adani Group has denied all these allegations outright.
As of the first half of 2021, the asset management arm of Elara Capital was the third largest shareholder in Adani Enterprises, according to data from S&P Global Intelligence. This company had 5.1 percent stake in Adani Enterprises.