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Adani shores up ports.

The com­pany, the most widely traded in Adani’s busi­ness empire, has been hit by a bru­tal sell-off

Adani building

triggered by a short-seller report that high­lighted Adani Group’s grow­ing debt pile while alleging «brazen» account­ing fraud and stock manip­u­la­tion at the con­glom­er­ate, which ranges from logist­ics to air­ports and elec­tri­city. Adani Group has denied the alleg­a­tions, but the ensu­ing stock mar­ket rout has knocked more than $110bn off its mar­ket value. Shares in Adani Ports and Spe­cial Eco­nomic Zone are about 27 per cent lower than before US short seller Hinden­burg Research pub­lished its report last month. Apsez’s announce­ment comes a day after the Adani fam­ily said that it had paid off a $1.1bn loan pledged against com­pany shares about 20 months early.

«When your shares have fallen 70 per cent, that obvi­ously cre­ates pres­sure,» said Anish Teli, man­aging part­ner at QED Cap­ital Advisors in Mum­bai. «Adani is want­ing to appease for­eign investors, espe­cially as he is try­ing to grow their image glob­ally. » Apsez is India’s largest private port com­pany, con­trolling almost a quarter of India’s cargo mar­ket, and is the jewel in Adani’s busi­ness empire. Although third-quarter oper­a­tional rev­enue was up 18 per cent year on year, rising from Rs40.7bn to Rs47.9bn, net profits fell year on year to Rs13.1bn, 16 per cent down on the pre­vi­ous year.

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  1. Edgar8 February 2023 at 11:04

    There are many things fishy about Adani and their accounting and I think a lot of companies are having doubts about them. Their worldwide expansion will not go very well if others perceive them as being dishonest and frauds.

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