Combined stock market value of 10 Adani Group companies falls below $100 billion as distressed conglomerate struggles to reassure investors following report by US short-seller Hindenburg Research I was.
The combined stock market value of 10 Adani Group companies fell below $100 billion on Tuesday. The Port-to-Power group has lost more than $136 billion in market capitalization since Jan. 24, when US-based Hindenburg Research released a report alleging accounting fraud and stock manipulation. . Adani Group has repeatedly denied.
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Billionaire Gautam Adani and his company hired a legal and communications team, cut costs and paid off debt in an attempt to calm traders concerned about accessing the group’s funding. The campaign helped the conglomerate’s dollar bonds recover from their woes, but the continued sell-off in stocks suggests that more money is needed.
“Capital spending and debt remain big concerns,” said Samir Karla, founder of Target Investing. Mumbai“These could put further pressure on valuations.”
The group has tapped international bond buyers for more than $8 billion in recent years and relies on global banks for at least as much foreign currency financing, according to data compiled by Bloomberg. Rating agencies have also revised outlooks for some companies, including Adani Green Energy Ltd. and Adani Ports & Special Economic Zone Ltd.
Adani and his company are now prioritizing financial health over recent waves of aggressive debt expansion. The group’s focus has shifted to preserving cash, repaying debt, and recovering collateral shares as it attempts to repair the damage caused by the Hindenburg report.
The group’s shares traded mixed on Tuesday, with flagship Adani Enterprises Ltd. trading little changed as of 11:04 am Mumbai. Adani Green, Adani Transmission Ltd. and Adani Total Gas Ltd. each fell to the 5% threshold, while Adani Power Ltd. rose by a similar magnitude and Adani Ports traded about 2% higher. .