Adani said the research report made “misleading claims about foreign entities” without any evidence.
Adani said on Thursday it was considering taking action against Hindenburg, who responded the same day by saying he would welcome such a move.
The Hindenburg report also noted that five of Adani’s seven major listed companies reported current ratios, a measure of liquid assets minus near-term liabilities, below 1, adding that it suggests “elevated short-term liquidity risk”.
It said major listed Adani companies had “substantial debt”, which has put the entire group on a “precarious financial footing” and that shares of seven Adani listed companies have plunged 85 per cent, which has been described as “sky-high”. called “Valuation”.
Adani’s response said that over the past decade, its group companies have “consistently de-lever”.
Defending its practice of pledging shares of its promoters – or major shareholders – the Adani group said raising finance against shares as collateral was a common practice globally and based on thorough credit analysis by large institutions and banks. Loan is given on.
The group said India has a robust disclosure regime and its promoter pledge in portfolio companies had fallen from over 50 per cent in some listed stocks in March 2020 to less than 20 per cent in December 2022.