Adani Enterprises Limited on Thursday denied rumors the Adani Group has retained accounting Grant Thornton to perform an independent audit of some of its company’s finances in the wake of charges of financial fraud and malpractice by short-seller Hindenburg Research.
AEL described the accusations as a “market rumour” and stated in an exchange filing that it would be “inappropriate” to comment more, according to business publication LiveMint.
“We would like to clarify that the aforementioned news item appears to be a market rumor, and thus commenting on it would be inappropriate on our part… We would like to confirm that we have made and will continue to make disclosures in accordance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and our agreements with stock exchanges “According to AEL’s filing.
Since the report by US-based short-seller Hindenburg was published, Gautam Adani’s conglomerate has lost approximately $120 billion in market value. The Adani Group has denied allegations of ‘brazen stock manipulation and accounting fraud… over decades,’ and has since sought to reassure investors by emphasizing a ‘very healthy balance sheet in the face of concerns about excessive debt.
To alleviate such concerns, the Adani Group has been repaying some of its debts; on Wednesday, the business daily Economic Times reported that the Adani Group is in talks with lenders to repay a $500 million bridge loan facility used to acquire controlling stakes in cement companies ACC Ltd and Ambuja Cements Ltd.
More assurances from Adani came just hours after market regulator SEBI said it is investigating Hindenburg’s claims; the Congress has also approached SEBI and the Reserve Bank of India, requesting an investigation into the exposure of public financial institutions to the crisis.
The Group stated that it has secure assets and strong cashflows, as well as ‘fully funded’ business plans and that it is ‘confident in our portfolio’s continued ability to deliver superior returns to shareholders.
The Adani Group’s crisis has sparked a political squabble in India, with opposition parties, including the Congress, accusing the ruling Bharatiya Janata Party of ‘favoring’ Adani, who is from Prime Minister Narendra Modi’s home state of Gujarat.
Several petitions requesting investigations into the various claims have been filed with the Supreme Court, which is scheduled to hear a clutch on Friday. To protect the interests of thousands of investors, the Supreme Court has already asked the government to put in place a “robust framework” by amending laws and strengthening SEBI’s supervisory control.
