Adani Group says balance sheet of companies 'very healthy’ and business plan is 'fully funded'

The Adani Group on Monday said that the balance sheet of each of its companies was "very healthy" and that it has strong corporate governance and secure assets. "We have industry-leading development capabilities, strong corporate governance, secure assets, strong cashflows, and our business plan is fully funded," a spokesperson of the group said.  

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Gautam Adani-led ports-to-power conglomerate has lost about half of its market capitalisation due to the heavy selling of shares of its group companies after a stinging report by US-based short seller Hindenburg Research.

The Hindenburg report, which accused the group of stock manipulation and fraud using a wave of shell firms, triggered a series of actions by foreign banks - like Credit Suisse, Citigroup, and Standard Chartered - and rating agency Moody’s.

The banks stopped accepting Adani Group's bonds as collateral and the rating agency downgraded the outlook of four group companies, shaking the confidence of investors which in turn caused high volatility in shares of Adani Group.

Rocked by these developments, the Adani Group has slashed its revenue growth target by 50 per cent and plans to cut down on capital expenditure, Bloomberg News reported Monday.  

When asked about reports on cutting down revenue growth targets and plans to scale down fresh capital expenditure, the spokesperson said the Adani Group companies "have strong cash flows, and our business plan is fully funded".  

The troubled group further said that each entity will review its own capital market strategy once the current market stabilises. It added that it was confident in the continued ability of its portfolio to deliver superior returns to shareholders. 

Adani Group's flagship company Adani Enterprises will release its financial results for the third quarter on Tuesday, February 14.