MUMBAI: The combined market value of Adani Group shares fell below $100 billion on Tuesday, a reflex that attempts to reassure investors following a scathing report from a U.S. short seller that it’s not doing well.
The port-to-power conglomerate has lost more than $135 billion in market cap since Jan. 24, when the U.S.-based company Hindenburg research released a report alleging accounting fraud and inventory manipulation, allegations Adani Group has repeatedly denied.
The port-to-power conglomerate has lost more than $135 billion in market cap since Jan. 24, when the U.S.-based company Hindenburg research released a report alleging accounting fraud and inventory manipulation, allegations Adani Group has repeatedly denied.
Billionaire Gautam Adani and his companies have hired legal and communications teams, cut expenses and paid down debt as they try to calm traders spooked by concerns about the group’s access to finance. While the campaign has brought the conglomerate’s dollar bonds back from troubled territory, the continued sell-off in stocks is an indication that more is needed.
The group has tapped international bond buyers for more than $8 billion in recent years, while also reaching out to global banks for at least as many foreign currency loans, data compiled by Bloomberg show. Rating agencies have also revised the outlook for some companies including Adani Green Energy Ltd. and Adani Ports & Special Economic Zone Ltd.
