Bengaluru: Hindenburg Research said on Wednesday that it maintains short positions Adani group companies Shifting the shares of companies in the Indian group, through US-traded bonds and non-Indian-traded derivative instruments.
the short-seller said seven Adani Listed companies have plunged 85% on a fundamental basis due to skyrocketing valuations and “major listed Adani companies have also taken substantial debt” which has “put the entire group in a precarious financial position”.
A spokesman for Adani did not immediately respond to a Reuters request for comment on the report.
The company has repeatedly dismissed the debt concerns. Adani’s chief financial officer Jugshinder Singh told the media on 21 January, “No one has raised debt concerns for us. Not a single investor has.”
Group controlled by the third richest man in the world Gautam Adani There have been longstanding concerns about increased debt and the Hindenburg report comes at a time when Adani Enterprises plans to raise $2.5 billion in India’s biggest follow-on public offering this week.
Shares of Adani Ports and Special Economic Zone fell 4.8% on Wednesday to their lowest level since mid-July, while group flagship company Adani Enterprises fell 2.5% to a 12-week low.
Shares of Adani Enterprises rallied 125% in 2022, while other group companies, including power and gas units, rallied over 100%.
Adani Group’s total gross debt rose 40% to Rs 2.2 trillion in the fiscal year ending March 31, 2022. CreditSights, part of Fitch Group, last September described the group as “overleveraged” and said it had “concerns” over its debt.
While the report later corrected some calculation errors, CreditSites said it retained its concerns over leverage.
Hindenburg is known for shorting electric truck maker Nikola Corp and Twitter, although it later reversed its position on Twitter.
the short-seller said seven Adani Listed companies have plunged 85% on a fundamental basis due to skyrocketing valuations and “major listed Adani companies have also taken substantial debt” which has “put the entire group in a precarious financial position”.
A spokesman for Adani did not immediately respond to a Reuters request for comment on the report.
The company has repeatedly dismissed the debt concerns. Adani’s chief financial officer Jugshinder Singh told the media on 21 January, “No one has raised debt concerns for us. Not a single investor has.”
Group controlled by the third richest man in the world Gautam Adani There have been longstanding concerns about increased debt and the Hindenburg report comes at a time when Adani Enterprises plans to raise $2.5 billion in India’s biggest follow-on public offering this week.
Shares of Adani Ports and Special Economic Zone fell 4.8% on Wednesday to their lowest level since mid-July, while group flagship company Adani Enterprises fell 2.5% to a 12-week low.
Shares of Adani Enterprises rallied 125% in 2022, while other group companies, including power and gas units, rallied over 100%.
Adani Group’s total gross debt rose 40% to Rs 2.2 trillion in the fiscal year ending March 31, 2022. CreditSights, part of Fitch Group, last September described the group as “overleveraged” and said it had “concerns” over its debt.
While the report later corrected some calculation errors, CreditSites said it retained its concerns over leverage.
Hindenburg is known for shorting electric truck maker Nikola Corp and Twitter, although it later reversed its position on Twitter.