AHMEDABAD, India, Sept. 4, 2023 /PRNewswire/ — Misleading reports about Adani Group, India’s largest critical infrastructure developer which has undertaken several projects that are strategic development priorities for the country, have failed to achieve have a substantial impact on the business performance of the group, as well as its ability to create shareholder value.
Adani Group shares have rallied strongly since the publication of a short selling report in January 2023. Four of the group’s largest companies (Adani Enterprises, Adani Ports, Adani Green and Adani Power) have earned more than 100% from its lows. Adani Ports, the largest institutional stock in Adani’s portfolio, is now trading above its pre-report price. Additionally, Adani Power is also trading above pre-report price levels. Despite recent reports, shares of the leading group closed in the green on Friday, indicating a lack of confidence in these misleading reports.
Significant investments made by large global institutions in recent months, including a sovereign wealth fund, have strengthened confidence in the group’s businesses. It is worth noting that these investors, which include the Qatar Investment Authority and GQG Partners, are repeat investors who were already large shareholders in the group’s businesses. Furthermore, none of the long-term investors, including France-based Total Energies, Abu Dhabi-based IHC, Qatar-based QIA and US-based GQG Capital Partners, have divested from their investments in the group’s businesses and they have continued to support them, some through increased participation. This is because the group has been a tremendous value creator for each of these investors.
Sales of shares to these investors have also improved liquidity at the promoter level, which can be used for strategic priorities. The group has raised nearly $10.5 billion through strategic stake sales to long-term investors. The short sellers report lists around $5 billion. The Adani Group remains committed to attracting more such investors as part of its 10-year capital program launched in 2016 to participate in the world’s largest and fastest growing infrastructure development platform.
In addition, the rating agencies have reaffirmed the ratings of all listed companies in the group. This has allowed continued access to the market. In the first quarter of the current financial year alone, the group has raised Rs 17,949 crore from domestic and international banks and capital markets.
The confidence shown by these investors underscores the strength of the group’s businesses and its commitment to high governance standards. From a financial point of view, the group continues to perform well and reported record profits in the first quarter of fiscal 24 following the short selling report. The group’s portfolio of listed companies achieved EBITDA of Rs 23,532 crore, up 42% year-on-year, almost matching the total FY2019 EBITDA of Rs 24,780 crore.
For FY23, EBITDA reached Rs 57,210 crore, up 42% YoY, with improved debt metrics and three times net debt-EBITDA ratio. The portfolio companies also had Rs 42,115 crore in total liquidity.
It is important to note that the Adani Group operates within the limits of the law and under the scrutiny of regulatory authorities in the respective jurisdictions. The accusations are based on false information and are only intended to defame the group’s image, but do not have a substantial impact on the group’s daily operations.
About Adani Group
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