BENGALURU, Jan. 25 (Portal) – Hindenburg Research said on Wednesday it is holding short positions in Adani group companies via US-traded bonds and non-India-traded derivative instruments, sending shares of companies in the Indian conglomerate sliding.
The short seller said that seven Adani listed companies are down 85% on a fundamental basis due to sky-high valuations and that “major Adani listed companies have also taken on significant debt” which “has put the entire group on a precarious financial footing.” “. .
An Adani spokesman did not immediately respond to Portal’ request for comment on the report.
The company has repeatedly dismissed debt concerns. Jugeshinder Singh, Adani’s Chief Financial Officer, told the media on January 21: “No one has raised any concerns about the debt we have. No single investor has done this.”
The group, controlled by the world’s third-richest man, Gautam Adani, has long faced concerns over increased debt, and the Hindenburg report comes at a time when Adani Enterprises (ADEL.NS) plans to… Raise $.5 billion in India’s largest follow-on IPO week.
Adani Ports And Special Economic Zone (APSE.NS) shares fell 4.8% on Wednesday to their lowest level since mid-July, while Adani Enterprises, the group’s flagship, fell 2.5% to a 12-week fell deep.
Adani Enterprises shares surged 125% in 2022, while other group companies, including power and gas units, gained more than 100%.
Adani Group’s total gross debt increased by 40% to Rs. 2.2 trillion for the year ended 31 March 2022. CreditSights, part of the Fitch Group, described the group as “over-indebted” last September and said it had “concerns” about its debt.
While the report later corrected some calculation errors, CreditSights said it maintained its leverage concerns.
Hindenburg is known for short-circuiting electric truck maker Nikola Corp (NKLA.O) and Twitter, although it later reversed its position on Twitter.
Reporting by Mrinmay Dey, Chris Thomas and Aditya Kalra; Edited by Dhanya Ann Thoppil and Edwina Gibbs
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