NEW DELHI: Adani Group is trying to calm investors’ sentiment amid increased scrutiny by the stock exchanges, the capital market regulator and the Supreme Court over allegations levied by the US-based short-seller Hindenburg Research.
The allegations have wiped out the Group’s share prices by up to 69% in the last 13 trading sessions and there is an increased concern over commercial banks’ exposure to the conglomerate and the latter’s ability to fund its ambitious expansion plans and repay debts.
The Group in a statement on Monday said it would review the capital market strategy of its entities once things stabilise and that it is confident of delivering superior returns to investors despite the ongoing slump. “Balance sheet of each of our independent portfolio companies is healthy. We have industry-leading development capabilities, strong corporate governance, secure assets, strong cashflows, and our business plan is fully funded.”
“Once the current market stabilises, each entity will review its own capital market strategy, be rest assured, we are confident in the continued ability of our portfolio to deliver superior returns to shareholders,” said Adani spokesperson.
The Gautam Adani-led Group has lost about half of its market capitalisation after Hindenburg accused it of pulling the “largest con in corporate history” by engaging in “brazen stock manipulation and accounting fraud” over the course of two decades.
Adanis have called the report “maliciously mischievous and unresearched” The report, published on January 24, triggered a series of events. Global banks such as Credit Suisse, Citigroup, and Standard Chartered have stopped accepting Adani Group’s bonds as collateral while rating agency Moody’s downgraded the outlook of four Group companies.
PSU gen insurers hold C348 cr in Adani cos
New Delhi: State-run general insurance companies such as New India, United India, National Insurance, Oriental Insurance and General Insurance Corporation Re have Rs 348 crore exposure in Adani Group companies, Finance Ministry told Parliament in a reply on Monday. This represents 0.14% of their total assets under management (AUM), the ministry added. Financial institutions like Exim Bank, SIDBI, NHB, National Bank for Financing Infrastructure and Development (NBFID) and NABARD cann’t reveal information under their acts, the ministry added. The government had previously said Life Insurance Corporation had a near Rs 36,000 crore exposure in Adani Group companies.