© 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
BENGALURU (Reuters) – Hindenburg Analysis mentioned on Wednesday it holds brief positions in Adani Group corporations by means of U.S.-traded bonds and non-Indian-traded spinoff devices, sending shares of corporations within the Indian conglomerate sliding.
The short-seller mentioned seven Adani listed corporations have an 85% draw back on a elementary foundation on account of sky-high valuations and that “key listed Adani corporations have additionally taken on substantial debt” which has “put the whole group on precarious monetary footing”.
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 instructed media on Jan. 21 “No person has raised debt issues to us. No single investor has.”
The group, which is managed by world’s third richest man Gautam Adani has lengthy confronted issues about elevated debt and the Hindenburg report comes at a time when Adani Enterprises plans to boost $2.5 billion in India’s largest follow-on public providing this week.
Shares in Adani Ports And Particular Financial Zone slid 4.8% on Wednesday to their lowest stage since mid-July whereas Adani Enterprises, the group’s flagship firm, dropped 2.5% to a 12-week low.
Shares in Adani Enterprises surged 125% in 2022, whereas different group corporations, together with energy and fuel items, rose greater than 100%.
Adani Group’s complete 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 mentioned it had “issues” over its debt.
Whereas the report later corrected some calculation errors, CreditSights mentioned it maintained its issues over leverage.
Hindenburg is understood for shorting electrical truck maker Nikola Corp and Twitter although it later reversed its place in Twitter.