The ports-to-power conglomerate has lost more than $135 billion in market capitalization since January 24 when US-based Hindenburg Research published a report alleging accounting fraud and stock manipulation —- allegations that Adani Group has denied repeatedly.
Billionaire Gautam Adani and his companies have hired legal and communication teams, cut expenses and repaid debt as they sought to calm traders spooked by concerns over the group’s access to financing. While the campaign brought the conglomerate’s dollar bonds back from distressed territory, the continued equity selloff is an indication that more is needed.
The group has tapped international bond buyers for more than $8 billion in recent years, while also turning to global banks for at least as much in 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.