The Adani fiasco triggered by Hindenburg Research's damning report has driven investors away and even Credit Suisse as well as Citigroup have removed value of its securities. The Reserve Bank of India is also looking into the exposure of banks to the firm, which is in a freefall and its stocks have been put under surveillance. But among those spooked by the controversy, former UK PM Boris Johnson's borther, Lord Jo Johnson has resigned from his position as a non-executive director at Elara Capital, an investment firm linked to Adani Group.
The 51-year-old is the younger brother of former British Prime Minister Boris Johnson, and had been a director at the firm since June last year according to the Financial Times. The newspaper had sourced the information from UK Companies House Records. Johnson stepped down following the cancellation of Adani Enterprises' follow on share sale, while Elara was one of the bookrunners on the FPO.
At the same time Johnson has cited lack of expertise as a reason to quit from the firm, and added that he was assured about the firm's good standing. He claimed that making a contribution to UK-India trade was a reason to join Elara Capital, which focuses on India-focused investments.
The Hindenburg report has also put the spotlight on Elara Capital, after reporting on the role of its fund in Mauritius in Adani's alleged market manipulation ploy. Lord Jo Johnson's brother Boris Johnson had also met Gautam Adani on his visit to India in 2022, shortly before he stepped down as the British Prime Minister.
