Adani Group tries to calm market, says balance sheet of companies ‘very healthy’

The conglomerate, led by billionaire Gautam Adani, said it had secure assets, strong cashflows, with its business plans “fully funded” and it remains confident of delivering returns to shareholders.

“We have industry leading development capabilities, strong corporate governance, secure assets, strong cash flows, and our business plan is fully funded,” the group said in a statement.

“We are confident in the continued ability of our portfolio to deliver superior returns to shareholders,” it added.

The group’s seven listed stocks have together lost about $120 billion in market value since a 24 January report the by US short-seller alleging that Adani pulled “the largest con in corporate history” using offshore tax havens and stock manipulation.

The Adani Group has strongly denied all allegations, calling them “malicious”, “baseless” and a “calculated attack on India”, but investors remain concerned.

Earlier on Monday, a Bloomberg report noted that the group had halved its revenue growth target and plans to scale down fresh capital expenditure. However, the group has refuted reports of a cut in growth goal and capex.

A company spokesperson said that projects may be delayed but none is shelved or deferred and plans for expansion of solar, green hydrogen and airports were on track.

The group’s statement read: “Once the current market stabilises, each entity will review its own capital market strategy.”

Adani Group has also appointed accountancy firm Grant Thornton for independent audits of some of its firms in a bid to discredit claims by the US-based research firm.

The Adani- Hindenburg row has sparked worries of financial contagion in the country and ability to carry on infrastructure projects. Gautam Adani has also lost his crown as Asia’s richest person.

Meanwhile, Moody’s has recently downgraded the ratings outlook for some Adani firms, while index provider MSCI said it would cut the weightings of some in its stock indexes.

SEBI probes short-seller’s allegations about Adani

The Securities and Exchange Board of India has been investigating the market rout, including examining trade patterns and any potential irregularities in the ₹20,000-crore share sale of flagship company Adani Enterprises that the group was forced to cancel due to the stock’s plunge.

The capital markets regulator confirmed the existence of the probe for the first time in a Supreme Court filing.

“SEBI is already enquiring into both the allegations made in the Hindenburg report as well as the market activity immediately preceding and post the publication of the report,” the market regulator said, adding the issue was in early stages of examination.

The regulator is set to brief federal finance ministry officials on Wednesday on its investigation into the shelved share sale.

The turmoil continued yesterday as well, with shares in the listed companies extending their losses. Shares of Adani Enterprises fell 7%, while Adani Total Gas, Adani Power and Adani Transmission lost 5% each on Monday.