Adani’s debt concern may be overstated: SES
With about $140 billion in market value of its group companies being wiped off in five weeks, Adani Group needs a third-party audit of accounts to allay fears of shareholders even though the concern over group debt may be ‘overstated’, a proxy advisory firm said.
image for illustrative purpose
Debt Load
- Gross debt at Rs2.26 lakh cr as of Sept 2022
- Total cash and cash equivalents Rs31,646 cr
- Repayment obligation of Rs17,166 cr between Jan 2023 and March 2024
New Delhi: With about $140 billion in market value of its group companies being wiped off in five weeks, Adani Group needs a third-party audit of accounts to allay fears of shareholders even though the concern over group debt may be ‘overstated’, a proxy advisory firm said.
“In addition to the response to Hindenburg, who is not a stakeholder, Adani must care for its stakeholders (investors and lenders) and address all areas of concern,” SES said in a report.
“An independent third party confirmation of its accounts would go a long way in establishing and restoring credibility.”
The apples-to-airport conglomerate has been rocked by a damning report by US short-seller Hindenburg Research which alleged “brazen stock manipulation and accounting fraud” and use of a number of offshore shell companies to inflate stock prices. The group has denied allegations, calling them ‘malicious’, ‘baseless’ and a ‘calculated attack on India’.
