BENGALURU, Jan 25 (Reuters) – Hindenburg Research said on Wednesday it held short positions in Adani Group companies through U.S.-traded bonds and derivatives not traded in India, sending shares of the companies tumbling. of the Indian conglomerate.
The short seller said seven Adani-listed companies are down 85% on a fundamental basis due to skyrocketing valuations and that “major Adani-listed companies have also taken on substantial debt”, which has ” put the whole group in a precarious financial situation”. .
A spokesman for Adani did not immediately respond to Reuters’ request for comment on the report.
The company has repeatedly dismissed debt issues. Adani’s chief financial officer, Jugeshinder Singh, told the media on January 21, “No one has told us about debt issues. No investors have.”
The group, which is controlled by the world’s third richest man, Gautam Adani, has long been concerned about high debt and the Hindenburg report comes at a time when Adani Enterprises (ADEL.NS) plans to raise 2.5 billion in India’s biggest follow-on public offering this week.
Shares of Adani Ports And Special Economic Zone (APSE.NS) fell 4.8% on Wednesday to their lowest level since mid-July while Adani Enterprises, the group’s flagship company, fell 2. 5% to hit a 12-week low.
Shares of Adani Enterprises jumped 125% in 2022, while other group companies, including power and gas units, rose more than 100%.
Adani Group’s total gross debt in the financial year ended March 31, 2022 increased by 40% to Rs 2.2 trillion. CreditSights, part of the Fitch Group, described the group last September as “overleveraged” and said it had “concerns” about its debt.
While the report later corrected some miscalculations, CreditSights said it maintained its concerns about leverage.
Hindenburg is known for shorting electric truck maker Nikola Corp (NKLA.O) and Twitter, although he later reversed his position on Twitter.
Reporting by Mrinmay Dey, Chris Thomas and Aditya Kalra; Editing by Dhanya Ann Thoppil and Edwina Gibbs
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