Accounting experts who spoke with the news agency Bloomberg stated that Adani Power’s Mundra Plant has more liabilities than assets which has come under the scanner after it reported losses worth $1.8 billion, news agency Bloomberg reported. The conglomerate has however, reassured investors and lenders that profit will come soon after reporting more than $1 billion of debt financing plan.
“The Mundra Thermal Power Plant and its debt, which experts say appears designed to shield Adani Power from extraordinary write-offs, regardless of the unit’s losses exemplifies this balancing act, where a single asset write-down could have cascading ramifications," Bloomberg reported. Adani Group stocks saw a massive selloff after the US-based short seller Hindenburg Research in January levelled allegations of fraudulent transactions and share price manipulation against the conglomerate. However, the group dismissed all charges as 'lies', emphasizing that it complies with all laws and disclosure requirements.
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The Hindenburg report went on to damage Adani's personal wealth to such an extent, it collapsed by more than half to $49.8 billion, according to the Bloomberg Billionaires Index. Meanwhile, listed companies' shares of Gautam Adani-led conglomerate lost more than $150 billion in combined market value amid the Hindenburg rout, though the stocks bounced back last week. Adani Group last month held roadshows in Singapore and Hong Kong to reassure investors that the company's finances are under control. The group is planning to hold similar roadshows in Dubai, London and the US later this month.
Meanwhile, Adani group is not looking to refinance debt or pump in capital, Jugeshinder Singh, CFO of Adani Group told Bloomberg News on the sidelines of an investor roadshow in Hong Kong last week.
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