This story is from February 16, 2023
Adani's seven listed companies have together lost about $120 billion in market value since a Jan 24 report by Hindenburg alleged the conglomerate improperly used offshore tax havens and manipulated stock, and flagged concerns over its high debt levels.
Adani Group will hold calls with bond investors on February 16 and February 21 amid market rout. It will be attended by its Chief Financial Officer (CFO) Jugeshinder Singh and head of Group Corporate Finance Anupam Misra.
Dollar-denominated bonds issued by Adani firms have dropped sharply after the report although they have pared some of those losses in recent days, with some investors differentiating between governance concerns around the conglomerate and the solvency of its operating companies.
At least 200 financial institutions around the world — including the likes of BlackRock, the world’s biggest asset manager — have had exposure to Adani Group’s $8 billion in dollar bonds, most of which slid into distress.
The Adani Group said its balance sheet is "very healthy" and is laser focused on continuing business momentum, as it looked to reassure investors to keep faith in the conglomerate despite a share rout triggered by a damning report by a US short-seller.
The conglomerate has adequate cash reserves and its listed companies are able to refinance their debts, the company said in a credit report.
"Once the current market stabilises, we will review our capital market strategy, but rest assured we are confident in our continued ability to deliver business that provides superior returns to shareholders," Group CFO Jugeshinder (Robbie) Singh said.
The group is in talks with lenders to repay a $500 million bridge loan facility it had taken to buy controlling stakes in cement companies ACC Ltd and Ambuja Cements Ltd last year.
The group is looking to repay the bridge loan with cash this month, the Reuters report said, citing people aware of the matter, adding that the loan had a tenor of six months and was part of a larger $5.25 billion financing package.
A day ago, Adani Group said its companies face no material refinancing risk or near-term liquidity issues, in its latest attempt to calm investors.