Hindenburg row: Assessing overall financial flexibility of Adani Group, says Moody's

By Team Newsable | First Published Feb 3, 2023, 2:50 PM IST

Adani-Hindenburg row: "These adverse developments are likely to reduce the group's ability to raise capital to fund committed capex or refinance maturing debt over the next 1-2 years," Moody's said.

Given the sharp and sudden drop in stock value following the release of the Hindenburg Research report, Moody's Investors Service stated on Friday that it is evaluating the overall financial flexibility of Adani Group entities, particularly their liquidity situation.

The group's ability to raise capital to pay for committed capex or refinance maturing debt over the following one to two years "is likely to be reduced by these adverse developments," according to Moody's.

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Also Read | No immediate impact on Adani entities' ratings following Hindenburg report: Fitch Ratings

Stocks of the Gautam Adani-led company were devalued on the exchanges after US-based short-seller Hindenburg Research issued a long list of accusations in a report, including illegal transactions and share price manipulation.

On January 24, a Hindenburg Research report indicted the Adani group companies of a number of alleged wrongdoings. Despite the group published their answer on January 30, 2023, this caused a decline in the share and bond values of several group businesses.

Also Read | Gautam Adani no longer among world's top 20 richest people

Adani Enterprises' stock dropped as high as 30% on Friday, to Rs 1,017, before bouncing back to trade at 15% down. Since Hindenburg issued its report last week, the company's share price has fallen by nearly 66 per cent.

Before the issues with Hindenburg's report started, Gautam Adani was the richest man in Asia and the third richest person in the world. He built a sizable fortune by mining coal and trade before diversifying into building, power production, manufacturing, and media. According to Bloomberg's Billionaire Index, on Friday his net worth had decreased by half to $61 billion, moving him down to the 21st position globally.

Also read: Adani pulls the plug on Rs 20,000 crore FPO, cites investor interest

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