According to sources, the Adani group has denied a recent report claiming that it secured a $3 billion loan from a Middle East-based sovereign wealth fund.
The denial came after the Reuters news agency reported on the matter, and the Bombay Stock Exchange requested clarification from the Adani group in response to the news report. According to Bloomberg, the company has clarified that the Reuters report is not true.
The Adani group has been under significant pressure since a report from US-based short seller Hindenburg Research alleged “stock manipulation” and “accounting fraud” by the conglomerate. Since the report was released on January 24, the Adani group’s listed entities have cumulatively lost over Rs 12 lakh crore in the stock market.
The company has denied the allegations and accused Hindenburg of committing a “calculated securities fraud”. In an effort to combat the negative fallout, the Adani group has been aggressively repaying and prepaying debts, which some observers see as a part of a wider strategy to make a comeback.
Adani Group’s response to the claims of a $3-billion loan
Adani Group’s fundraising plans have been in the news recently, with a Reuters report claiming that the conglomerate had secured a $3 billion loan from a Middle East-based sovereign wealth fund. The report also suggested that the credit line could be increased to $5 billion. However, the Adani Group denied the report, stating it was untrue. The company’s official statement is yet to be released.
The news of the fundraising plan comes at a time when the group is facing steep share price falls and a regulatory probe. As part of its comeback strategy, Adani management recently informed bondholders that it expects to prepay or repay share-backed loans worth $690 million to $790 million by the end of March. The group is also holding a fixed-income roadshow this week in Singapore and Hong Kong to shore up investor confidence.
Despite the controversies surrounding the group, all the 10 listed entities of the Adani Group closed higher on March 1. The flagship company, Adani Enterprises, recorded a nearly 15 per cent increase, settling at Rs 1,564.55, over Rs 200 higher than the last closing price. The surge in share prices could be a result of the company’s efforts to repay debts and secure new funding.
Adani Enterprises Limited is a flagship company of the Adani Group, an Indian multinational conglomerate with interests in various industries such as ports, logistics, agribusiness, power generation, and renewable energy.
Adani Enterprises operates in diverse sectors, including coal mining, trading, and logistics; ports and logistics; agribusiness; power generation; and renewable energy production. Adani Enterprises is listed on the National Stock Exchange of India and the Bombay Stock Exchange.