Big news has come for Indian billionaire Gautam Adani. This news is regarding Adani Group’s ongoing port project in the capital of Sri Lanka. For this project, America has promised to give 553 million dollars i.e. Rs 4600 crore to Adani Group. China is shocked after this news. America’s entry into Sri Lanka can put a stop to China’s arbitrariness. Besides, China’s influence on this sea-surrounded country will also reduce. On the other hand, a tremendous rise in the shares of Adani companies is being predicted.
Shares of Adani Port are trading with a rise of more than 2 percent. This investment has come at a time when American banks are not ready to support Gautam Adani. Adani has to depend on the Middle East. This news will increase the confidence of Gautam Adani and Adani Group in American and European banks. Besides, investors will also be affected by the group’s influence. Adani Group and Gautam Adani have faced a lot of embarrassment after the Hindenburg report. The confidence of banks and investors has been broken. However, Gautam Adani has denied all the allegations made in the report.
American agency will give 4600 crores
Adani Group is building a deep water waste container terminal in Colombo. In which America’s agency International Development Finance Corporation is going to provide funding of Rs 4600 crore. This is considered to be the biggest investment of this American government agency in Asia so far. It will boost Sri Lanka’s economic growth and “its regional economic integration, including India, a key partner of both countries,” DFC said in a statement.
The US funding is an effort to reduce Beijing’s influence on Sri Lanka after Colombo spent on Chinese port and highway projects before the economic downturn last year. Sri Lanka has a huge debt with China. In such a situation, Colombo always had to obey Beijing. At the same time, India also wants to help its neighboring country and turn it towards itself. The main reason for this is to stop China’s increasing dominance in the Indian Ocean.
China’s dominance has to end
China has invested about 2.2 billion dollars in Sri Lanka. China is also the largest foreign direct investor in Sri Lanka. US officials have openly criticized the Sri Lankan port and called it part of China’s “debt trap diplomacy”. For this reason, the US government has decided to invest here to end China’s dominance. DFC said it will work with sponsors John Keells Holdings Plc and Adani Ports and Special Economic Zone Ltd, relying on their “local experience and high quality standards”. Colombo Port is one of the busiest ports in the Indian Ocean due to its proximity to international shipping routes. Nearly half of all container ships pass through its waters. DFC said it has been operating at more than 90 percent utilization for two years and needs new capacity.
Adani will get big benefit
Even though American short seller Hindenburg Research has made serious allegations against Adani, American funding can give a new flight to Adani Group. Adani’s stake in this project is more than 51 percent. In such a situation, Gautam Adani and his firm will benefit the most from this funding. Hindenburg had accused Adani Group of share manipulation and accounting fraud. After which there was a big fall in the shares of Adani Group. At that time there was a loss of more than 150 billion dollars in the market cap of Adani Group. The matter reached the Supreme Court. SEBI ordered investigation. On which the regulator has submitted its transferred report.
Adani Port shares rise
After this news, there is a rise in the shares of Adani Port. At 12:42 pm, the company’s shares are trading at Rs 816.55 with a rise of 2.43 percent. The company’s shares also reached Rs 819.10 during the trading session. However, today the company’s shares opened at Rs 802. The company’s shares have recovered from the report of Hindenburg Research. At present the market cap of the company is Rs 1,76,386 crore.