© Reuters. FILE PHOTO: The emblem of the Adani Group is seen on the facade of one in every of its buildings on the outskirts of Ahmedabad, India, April 13, 2021. REUTERS/Amit Dave
(Reuters) – Quick-seller Hindenburg Analysis stated on Wednesday it holds brief positions in India’s Adani Group corporations by U.S.-traded bonds and non-Indian-traded spinoff devices.
The seven listed corporations of the Adani group, which is managed by world’s third richest man Gautam Adani, have an 85% draw back on a elementary foundation resulting from sky-high valuations, Hindenburg stated within the report.
“Key listed Adani corporations have additionally taken on substantial debt, together with pledging shares of their inflated inventory for loans, placing all the group on precarious monetary footing,” Hindenburg stated.
An Adani spokesperson didn’t instantly reply to Reuters request for touch upon the report. The corporate has repeatedly dismissed debt issues.
Adani Chief Monetary Officer Jugeshinder Singh stated on Jan. 21 “No person has raised debt issues to us. No single investor has.” Adani Enterprises, the flagship firm of ports-to-energy conglomerate Adani Group, has stated it can increase $2.5 billion in India’s largest follow-on public providing due this Friday.
Shares of Adani Enterprises surged 125% in 2022, whereas different group corporations, together with energy and fuel models, rose over 100%.
Adani Group’s whole gross debt within the monetary yr ending March 31, 2022, rose 40% to 2.2 trillion rupees. CreditSights, a part of the Fitch Group, described the group final September as “overleveraged” and stated it had “issues” over its debt.
Whereas the report later corrected some calculation errors, CreditSights stated it maintained issues over leverage.