Icra monitoring companies of Adani Group

Domestic rating agency Icra is monitoring the shares and other financial instruments of Adani Group companies. Icra said in a statement issued on February 1 that the rating agency rated Adani Group’s rated portfolio of companies, especially the financial flexibility of the group with its access to domestic and international capital markets and banking channels, pricing of debt, strictness in debt contracts, debt monitoring developments related to withdrawal or extension of facilities and refinancing.

Adani Enterprises, the flagship company of the billion-dollar Adani Group, has announced the withdrawal of its Rs 20,000 crore FPO, launched last week, on February 1 itself. These days the Adani Group is facing allegations of “stock market manipulation” and “accounting fraud” from US-based short seller Hindenburg Research. Hindenburg issued this report on 24 January.

The agency said in Adani Transmission Ltd’s long-term contracts, dominant position in the market for Adani Ports and favorable conditions for long-term contracts and Adani Total Gas, it sees potential for long-term cash flow sustainability.

It is noteworthy that till a few days ago, Gautam Adani, who was the richest person not only in India but also in Asia, is facing difficult times for the last few days. After the Hindenburg Report came to the fore, Gautam Adani’s networth has decreased rapidly and there is a continuous decline in the shares of the companies of his business house. The situation became such that Adani Enterprises FPO, the flagship company of Adani Group, had to withdraw its huge FPO even after it was fully subscribed. Now Gautam Adani himself has told about why he was forced to take such a decision.

Regarding the withdrawal of a record FPO of Rs 20 thousand crore, Adani said in a message to the shareholders, for me the interest of my investors is at the top and everything else is second. That’s why we called off the FPO to save investors from further losses.

This offer of Adani Enterprises was the biggest FPO in the country so far. Just before the opening of the FPO, the American short seller firm Hindenburg released a report and made several allegations against the Adani group. Since then, the decline of Adani Group’s shares has not stopped. However, if we talk about the FPO, it was fully subscribed till the last day. The group had fixed a price band of Rs 3112 to Rs 3276 for the FPO. On the other hand, the stock of Adani Enterprises closed at Rs 2,128.70 on Wednesday with a huge loss of 28.45 per cent.

Gautam Adani said in the message, this decision will have no impact on our current operations or future plans. We will continue to focus on timely completion and delivery of projects. The decision may have surprised many, but in view of the turmoil in the market yesterday, the Board felt that it was not ethically sound to go ahead with the FPO.