Beleaguered Adani Group sought to reassure investors by saying that the balance sheets of each of its independent portfolio companies were “very healthy” hours after capital markets regulator Sebi said it was being sold by US-based short-seller Hindenburg to the group. Looking into the charges against him. research in an important report in late January.
Group, led by billionaire Gautam AdaniIt said its assets are secure, it has strong cashflows, its business plan is “fully funded” and it is confident of delivering returns to shareholders.
“We have industry-leading growth capabilities, strong corporate governance, secure assets, strong cash flows and our business plan is fully funded,” the group said in a statement.
It added, “We remain confident in the continued ability of our portfolio to deliver superior returns to shareholders.”
The group’s seven listed stocks have lost a combined nearly $120 billion in market value since a January 24 report alleging US short-sellers alleged Adani used offshore tax havens and stock manipulation. The “biggest fraud in corporate history”.
The Adani Group has strongly denied all the allegations, calling them “malicious”, “baseless” and a “planned attack on India”, but investors are worried.
Earlier on Monday a Bloomberg The report said the group has halved its revenue growth target and plans to reduce fresh capital expenditure. However, the group denied reports of cut in growth targets and capex.
A company spokeswoman said projects could be delayed, but none are postponed or deferred and plans for solar, green hydrogen and airport expansions are on track.
The group’s statement read: “Once the current market stabilizes, each entity will review its capital markets strategy.”
Adani Group has also appointed accountancy firm Grant Thornton for an independent audit of some of its firms to debunk the claims of the US-based research firm.
The Adani-Hindenburg dispute has raised concerns about the country’s financial crisis and its ability to pursue infrastructure projects. Gautam Adani’s crown of Asia’s richest man has also been snatched away.
Meanwhile, Moody’s recently downgraded the rating outlook for some Adani firms, while index provider MSCI said it would cut the weighting of some in its stock index.
SEBI probes short-seller’s allegations about Adani
The Securities and Exchange Board of India is examining market movements, including examining trading patterns and any possible irregularities 20,000 crore share sale of flagship company Adani Enterprises which the group was forced to cancel due to stock fall.
The capital markets regulator confirmed the existence of the probe for the first time in a Supreme Court filing.
“SEBI is already examining the allegations made in the Hindenburg Report as well as the market movements before and after the publication of the report,” the markets regulator said.
The regulator is set to brief federal finance ministry officials on Wednesday about the probe into the stalled share sale.
The turmoil continued yesterday as shares of listed companies extended losses. Shares of Adani Enterprises fell 7% each, while Adani Total Gas, Adani Power and Adani Transmission declined 5% each on Monday.
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