It was reported earlier in the day that the Gautam Adani-led conglomerate will slash its revenue growth targets by 50 per cent in addition to scaling down its plans for fresh capital expenditure
Adani Group said on Monday that all its portfolio companies maintain “very healthy” balance sheets and that they follow strong corporate governance practices. The group said this in response to media reports of the ports-to-energy conglomerate scaling down its revenue growth targets in the wake of a stock market rout caused by a short-seller report.
Since Hindenburg Research, a US-based short-seller, released a report on January 25 accusing Adani Group companies of fraud of market manipulation, the listed entities of the group have lost over $120 billion in its combined market capitalisation. The group, however, denied all charges and claimed that Hindenburg’s allegations amounted to “a calculated attack on India”.
Responding to media reports that came out on Monday, a spokesperson for Adani Group told Reuters, “[Adani Group companies] have strong cash flows, and our business plan is fully funded.” It was reported earlier in the day that the Gautam Adani-led conglomerate will slash its revenue growth targets by 50 per cent in addition to scaling down its plans for fresh capital expenditure.
The spokesperson added that each Adani firm will conduct a review of its own capital market strategy once market situation stabilises. The high volatility in market perception of Adani-related entities had earlier led to the calling off of Adani Enterprises’ Rs 20,000 crore share sale.
“[We] are confident in the continued ability of our portfolio to deliver superior returns to shareholders,” the Adani Group spokesperson said.