New Delhi, <keyword id="17621187" type="General" weightage="50" keywordseo="embattled-adani-group" source="Orion">Embattled Adani Group</keyword> on Monday said it has repaid loans aggregating USD 2.65 billion to complete a prepayment programme to cut overall leverage in an attempt to win back investor trust post a damning report of a US short seller. In a Credit Note released on Monday, <keyword id="6367820" type="General" weightage="100" keywordseo="adani-group" source="Orion">Adani Group</keyword> said it has made a full prepayment of USD 2.15 billion of loans that were taken by pledging shares in the conglomerate's listed firms and also another USD 700 million in loans taken for the acquisition of <keyword id="122370" type="General" weightage="50" keywordseo="ambuja-cement" source="Orion">Ambuja Cement</keyword>. "The prepayment was done along with interest payment of USD 203 million," it added. Further, the credit update states that the promoters completed the sale of shares in four listed group entities to <keyword id="4169270" type="General" weightage="50" keywordseo="gqg-partners" source="Orion">GQG Partners</keyword>, a leading global investment firm, for USD 1.87 billion (Rs 15,446 crore). "The deleveraging programme testifies to the strong liquidity management and capital access at sponsor level even in volatile market conditions, supplementing the solid capital prudence adopted at all portfolio companies," Adani Group said in the credit update. US short-seller <keyword id="9916845" type="General" weightage="50" keywordseo="hindenburg-research" source="Orion">Hindenburg Research</keyword> in January released a damning report alleging accounting fraud and stock price manipulation at Adani Group, triggering a stock market rout that had erased about USD 145 billion in the conglomerate's market value at its lowest point. Adani Group has denied all allegations by Hindenburg and is plotting a comeback strategy. The group has recast its ambitions as well as prepaid some loans to assuage investors. The credit update further highlights major improvements in key financial metrics - the portfolio's combined Net Debt to EBITDA ratio has decreased from 3.81 in FY22 to 3.27 in FY23, run rate EBITDA surged from Rs 50,706 crore in FY22 to Rs 66,566 crore in FY23. The credit update further states that the banking lines of Adani Group continue to show confidence by disbursing new debt and rolling over existing lines of credit. Moreover, rating agencies both domestic and international rating agencies have reaffirmed their ratings in all the group companies. Debt Service Cover Ratio (DSCR) has improved to 2.02x during FY23 from 1.47x during FY22. Gross Assets increased to Rs 4.23 lakh crore, up by Rs 1.06 lakh crore. Gross Asset / Net Debt cover has improved to 2.26x in FY23 from 1.98x in FY22. Continued investments in core infra with gross assets of Rs 3.77 lakh crore (89 per cent of the portfolio) provide long-term multi-decadal visibility of cash flow, it said, adding cash balance was higher by 41.5 per cent at Rs 40,351 crore against Rs 28,519 crore. Free Flow from operations - FFO - (EBITDA less finance cost less tax paid) was Rs 37,538 crore. Cash Balance and FFO (together at Rs 77,889 crore) are much higher than debt maturity cover for FY24, FY25 and FY26 of Rs 11,796 crore, Rs 32,373 crore and Rs 16,614 crore, respectively, at the combined portfolio level.

Adani Group repays loans worth $2.65 bn to complete prepayment programme

<ul><li>The embattled <keyword id="76451" type="General" weightage="100" keywordseo="adani" source="Orion">Adani</keyword> Group has sold minority stakes in four of its listed companies to US-based <keyword id="16686400" type="General" weightage="80" keywordseo="gqg" source="Orion">GQG</keyword> Partners for ₹15,446 crore.</li><li>GQG Partners has picked up stakes in Adani Enterprises, Adani Ports &amp; SEZ, Adani Transmission, and Adani Green Energy.</li><li>The announcements comes as the Adani group looks to shore up liquidity ahead of the $2 billion debt repayment due in the coming months.</li></ul>The embattled Adani Group has sold minority stakes in four of its listed companies to US-based GQG Partners for Rs 15,446 crore as the apple-to-airport conglomerate, recovering from a sell-off triggered by a short-seller report, looks to shore up liquidity ahead of the USD 2 billion debt repayment due in the coming months. It sold shares in flagship incubating firm Adani Enterprises Ltd (AEL), port company Adani Ports and Special Economic Zone Ltd (APSEZ), electricity transmitting firm Adani Transmission Ltd (AEL) and renewable energy firm Adani Green Energy Ltd (AGEL). "GQG is investing in Adani portfolio companies which own and operate the largest airport and port platform in India, largest private sector transmission and distribution platform in India and that will generate about 9 per cent of India's renewable energy capacity by 2030," it said in a statement on Thursday. The deal happened through secondary market block deals. "The investment has made GQG a key investor in the development and growth of critical Indian infrastructure," it added. The share sale is part of the Gautam Adani-led group's comeback strategy after a damning report from an American short seller wiped out more than USD 140 billion off the conglomerate's market value. The group has a gross debt of Rs 2.21 lakh crore, about 8 per cent of which is due for repayment by the end of next fiscal year. In AEL, where the promoters held 72.6 per cent stake prior to the sale, 3.8 crore shares or 3.39 per cent stake was sold for Rs 5,460 crore. In APSEZ, where promoters held 66 per cent stake, 8.8 crore shares or 4.1 per cent shareholding was sold for Rs 5,282 crore. As much as 2.8 crore shares or 2.5 per cent stake in of ATL, where promoters held 73.9 per cent shareholding, was sold for Rs 1,898 crore. In AGEL, where promoters held 60.5 per cent shareholding, 5.5 crore shares or 3.5 per cent stake was sold for Rs 2,806 crore. "GQG Partners, a leading US-based global equity investment boutique, announced today the completion of a Rs 15,446 crore (USD 1.87 billion) in a series of secondary block trade transactions in the Adani portfolio companies - APSEZ, AGEL, ATL and AEL," the statement said. Jefferies India Private Limited acted as the sole broker for the transaction. Rajiv Jain, Chairman and CIO of GQG Partners, said, "I am excited to have initiated positions in the Adani companies." "Adani companies own and operate some of the largest and most important infrastructure assets throughout India and around the world. <keyword id="111343" type="General" weightage="20" keywordseo="Gautam-Adani" source="Orion">Gautam Adani</keyword> is widely regarded as among the best entrepreneurs of his generation. "We believe that the long-term growth prospects for these companies are substantial, and we are pleased to be investing in companies that will help advance India's economy and energy infrastructure, including their energy transition over the long-run," he said. Adani Group CFO Jugeshinder (Robbie) Singh said the transaction with GQG marks the continued confidence of global investors in the governance, management practices and the growth of Adani portfolio of companies. India's total electricity generating capacity is more than 390 GW and renewables exceed 100 GW. Last year at the United Nations Climate Change Conference, the Indian government announced that by 2030 India's non-fossil fuel capacity would be 500 GW. "Adani Group plans to supply the country with 45 GW (9 per cent of India's renewable energy) by 2030," the statement said. "Adani Electricity Mumbai Limited, the distribution arm of ATL (committed to Net Zero by 2050) has legally covenanted targets to increase the renewable energy penetration from 3 per cent in FY21 to 60 per cent by FY27," it added. APSEZ has committed to being carbon neutral by 2025 and to be a leader in the development of sustainable transport utility. "AEL, through its wholly owned subsidiary Adani New Industries Limited, has committed to build, over the next 9 years, a new green hydrogen vertical focused on decarbonization of industrial energy and mobility," it said. The investment comes at a time when Adani Group has been under a cloud after US-based short seller Hindenburg Research accused the conglomerate of stock manipulation and accounting fraud. Though the group has denied all allegations and responded to allegations with detailed replies, shares of group companies had plunged. They, however, have recovered some of the losses in the last two trading sessions. Florida-headquartered GQG had offices in New York, London, Seattle and Sydney. It is listed on the Australian Securities Exchange and managed USD 92 billion in client assets as of January 31. SEE ALSO: <a href="https://www.businessinsider.in/finance/banks/news/indian-banks-decade-best-metrics-and-subdued-valuations-make-them-a-compelling-buy-bernstein/articleshow/98359442.cms">Indian banks’ decade-best metrics and subdued valuations make them a compelling buy: Bernstein</a> <a href="https://www.businessinsider.in/stock-market/news/delhivery-shares-edge-lower-after-softbank-offloads-3-8-stake-for-954-crore/articleshow/98354248.cms">Delhivery shares edge lower after SoftBank offloads 3.8% stake for ₹954 crore</a> <a href="https://www.businessinsider.in/india/news/moodys-upgrades-indias-2023-gdp-growth-estimates-to-5-5-on-account-of-resilient-economy-higher-capex-allocation/articleshow/98326620.cms">Moody’s upgrades India’s 2023 GDP growth estimates to 5.5% on account of resilient economy, higher capex allocation</a>

Adani group sells stake in four companies to GQG Partners for ₹15,446 crore

Private sector lender <keyword id="39409" type="General" weightage="20" keywordseo="kotak" source="Orion">Kotak</keyword> Mahindra Bank has a "small exposure" to the embattled <keyword id="6367820" type="General" weightage="20" keywordseo="adani-group" source="Orion">Adani Group</keyword> which has been made in line with its credit philosophy, a senior official has said. Paritosh Kashyap, president and head for wholesale banking at Kotak Mahindra Bank, said the issues surrounding <keyword id="76451" type="General" weightage="20" keywordseo="adani" source="Orion">Adani</keyword> Group are more of a "capital market and valuations issue and not a credit issue." "We have a small exposure to the group. We do business with every corporate in the country, and our exposures are in line with our credit philosophy and size of our balance sheet," Kashyap told PTI in an interaction. He said operating companies in the group have "reasonable leverage", coupled with strong profitability and balance sheets. It can be noted that a report by the US short-seller had called Adani as the biggest con in corporate history, making wide-ranging allegations on governance practices among other aspects to say that the stocks are overvalued by 85 per cent. The publishing of the report in late January led to a rout in Adani group's listed entities, and also made investors nervous about banks initially as they feared a ripple effect to play out on the banks who have exposure to the group. The RBI has launched a special examination of the banking system's exposures to Adani Group entities, and Governor Shaktikanta Das has said that a single case cannot impact the broader banking system. According to experts, the Indian banks' exposures are to operative companies and not against shares at the listed holding company level. This is so because in most of the cases barring asset buys by infrastructure companies, Indian banks are not allowed to lend more than Rs 20 lakh as loans against shares, which has come in as a helpful regulatory mandate. Since the controversy broke out, banks and financial institutions, especially the ones controlled by the state, have come out with commentaries and details of their exposures to Adani Group in a bid to assuage concerns. Country's largest lender SBI has said its overall exposure to Adani Group is Rs 27,000 crore and it has not extended any loan against shares to the group. Life insurance behemoth LIC has said its overall exposure is over Rs 35,000 crore, with a large part of it being in equity investments which have suffered alongside the rout in stocks, and some reports pegging the valuations dipping below the purchase price as well. Kashyap said the overall wholesale banking book is bereft of any stress for Kotak Mahindra Bank and also expressed concerns about the lack of any stress emerging for over seven years now. "As a segment, I can't say any one which has a stress," he said, adding that the bank is open to doing business with segments like infrastructure, real estate and lending to non-banks, which is otherwise considered as prone to stress. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/adani-group-sbi-sbi-life-among-stocks-to-watch/articleshow/98506578.cms">Sensex, Nifty50 decline as auto, FMCG and IT stocks emerge as top drags</a> <a href="https://www.businessinsider.in/stock-market/news/longer-trading-hours-better-norms-for-ipos-among-assochams-recommendations-for-equity-markets/articleshow/98477860.cms">Longer trading hours, better norms for IPOs among Assocham’s recommendations for equity markets</a> <a href="https://www.businessinsider.in/india/news/indias-gross-savings-and-investments-edge-higher-in-fy22-despite-inflation-says-sbi-research-report/articleshow/98444014.cms">India’s gross savings and investments edge higher in FY22 despite inflation, says SBI Research report</a>

Kotak Mahindra Bank has small exposure to Adani; issues afflicting group more valuations-oriented

<ul class="summary-list"><li>Billionaire investor Mark Mobius said his firm avoided the share sale by Adani Enterprises that was later pulled. </li><li>The debt load at Indian conglomerate Adani and its associates "sort of scared us away," he told Bloomberg.</li></ul>Mark Mobius, a pioneer in emerging-markets investing, said his firm didn't take part in Adani Enterprises' stock sale before it was scrapped because it had concerns about the embattled Indian conglomerate's debt. "It's all about debt. The company and its associates are heavily in debt, and that's what sort of scared us away," the founding partner of Mobius Capital Partners <a href="https://www.youtube.com/watch?v=1qes61MyR2I" target="_blank" rel="noopener">said in a Bloomberg interview Thursday</a>. Mobius said the problems surrounding Adani Enterprises and the Adani Group are specific to those entities. "India is going to still go from strength to strength. It's an incredible country, incredible prospects, high-growth, young population. I think it's a typical scandal that you get in capital markets and it'll pass," he said. Shares in Adani Enterprises, whose businesses range from energy to infrastructure to agricultural products, have plunged after US short seller Hindenburg Research released a bombshell <a href="https://hindenburgresearch.com/adani/" target="_blank" rel="noopener">report</a> about the Adani Group. Adani Enterprises canceled a<a href="https://www.bseindia.com/xml-data/corpfiling/AttachLive/8e2c9f40-730f-444a-a65f-432194e81edc.pdf" target="_blank" rel="noopener"> $2.5 billion share sale</a> even after the offering was<a href="https://markets.businessinsider.com/news/stocks/adani-completes-share-sale-market-rout-hindenburg-fraud-allegations-2023-1?utm_medium=ingest&amp;utm_source=markets"> fully subscribed Tuesday</a> with help from institutional investors. Hindenburg said its two-year investigation of the company, led by Indian tycoon Gautam Adani, found it has engaged in "brazen stock manipulation" and an accounting fraud scheme over decades.Mobius said banks are going to be more cautious as a result of the turmoil surrounding Adani. "That will impact some of the highly indebted companies, but those companies that have strong balance sheets and low debt will continue to do well," he said.Indian tycoon Gautam Adani has hit back against Hindenburg's report, calling it <a href="https://markets.businessinsider.com/news/stocks/adani-group-legal-action-hindenburg-short-seller-2023-1?utm_medium=ingest&amp;utm_source=markets">"maliciously mischievous" and "unresearched"</a>. The short seller in response has stood its ground on the accusations.

Legendary investor Mark Mobius said he shunned embattled Adani's share sale over debt concerns but he's still bullish on India

<ul class="summary-list"><li>The world's biggest asset manager BlackRock holds over $100 million in Adani dollar bonds, per Bloomberg.</li><li>It's one of the biggest holdings among the 200 or so institutions with exposure to the Indian conglomerate.</li></ul>BlackRock has more than $100 million tied up in Adani Group's dollar bonds, which have come under intense scrutiny since a US short seller's scathing research note on the Indian conglomerate sparked a rout in its stocks.Filings to the SEC show the <a href="https://www.advratings.com/top-asset-management-firms">world's biggest asset manager</a> has one of the biggest known exposures to Adani's estimated $8 billion in US currency notes, <a href="https://www.bloomberg.com/news/articles/2023-02-03/blackrock-among-top-funds-with-exposure-to-adani-s-dollar-debt" target="_blank" rel="noopener">Bloomberg reported Friday.</a>Short-seller Hindenburg Research's <a href="https://hindenburgresearch.com/adani/" target="_blank" rel="noopener">research note</a> last Tuesday alleged there was a "brazen stock manipulation and accounting fraud scheme" at the Adani Group. The ensuring battle between Adani and Hindenburg has driven a rout in stocks of the group's individually listed businesses, <a href="https://markets.businessinsider.com/news/stocks/adani-stocks-wipe-out-over-100-billion-market-value-2023-2">wiping over $100 billion off their market value</a>.Notably, concern over Adani's debt was a key pillar of Hindenburg's argument for initiating a short-sell battle with the group."Key listed Adani companies have also taken on substantial debt, including pledging shares of their inflated stock for loans, putting the entire group on precarious financial footing. 5 of 7 key listed companies have reported 'current ratios' below 1, indicating near-term liquidity pressure," it said in its research note.Adani <a href="https://www.bseindia.com/xml-data/corpfiling/AttachLive/8e2c9f40-730f-444a-a65f-432194e81edc.pdf" target="_blank" rel="noopener">canceled a $2.5 billion share sale</a> this week, despite <a href="https://markets.businessinsider.com/news/stocks/adani-completes-share-sale-market-rout-hindenburg-fraud-allegations-2023-1?utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets">picking up enough investors to pull it off</a>.Legendary investor Mark Mobius said his firm didn't take part in Adani Enterprises' stock sale before it was scrapped because it had concerns about the embattled Indian conglomerate's debt."It's all about debt. The company and its associates are heavily in debt, and that's what sort of scared us away," the founding partner of Mobius Capital Partners <a href="https://www.youtube.com/watch?v=1qes61MyR2I" target="_blank" rel="noopener nofollow">said in a Bloomberg interview Thursday</a>. Over 200 institutions have taken on debt from the group's companies, Bloomberg reported. Its analysis of filings covered only 18% of Adani's total dollar debt due to different reporting rules across countries, it said. It reported that Adani is considering prepaying some loans early to restore confidence in the conglomerate's financial health. BlackRock didn't immediately respond to Insider's request for comment.

BlackRock has more than $100 million exposure to Adani's dollar debt, report says

<ul class="summary-list"><li>Embattled Indian conglomerate Adani Group is paying back $1.1 billion in debt ahead of schedule.</li><li>It's scrambling to halt a stocks rout that's wiped out over $110 billion in market value over the past fortnight.</li></ul>Adani Group said Monday that it would pay back over $1 billion in debt ahead of schedule in a bid to shore up investor confidence, after its companies were battered by a two-week stock-market rout.The Indian conglomerate said in a <a href="https://www.adani.com/Newsroom/Media-Release/Statement-On-Pledge-of-Shares-of-Adani-Listed-Companies" target="_blank" rel="noopener">statement</a> that it plans to repay just over $1.1 billion of loans ahead of their scheduled maturity in September 2024.The borrowings were backed by <a href="https://markets.businessinsider.com/stocks/adani_portsspecial_economic_zone-stock">Adani Ports</a>, <a href="https://markets.businessinsider.com/stocks/adani_green_energy-stock">Adani Green Energy</a>, and <a href="https://markets.businessinsider.com/stocks/adani_transmission-stock?miRedirects=1">Adani Transmission</a> – three of the group's companies that have seen their share prices plummet over the past fortnight.The selloff came after US-based short-seller Hindenburg Research published a <a href="https://markets.businessinsider.com/news/stocks/gautam-adani-hindenburg-research-explained-stock-market-outlook-investing-analysis-2023-1">bombshell report</a> that accused Adani of "pulling the largest con in corporate history" through "brazen stock manipulation and accounting fraud".Adani has <a href="https://markets.businessinsider.com/news/stocks/adani-group-legal-action-hindenburg-short-seller-2023-1?utm_medium=ingest&amp;utm_source=markets">denied Hindenburg's allegations</a> – but the report still sparked a massive stock market rout that has wiped more than <a href="https://markets.businessinsider.com/news/stocks/adani-hindenburg-selloff-eclipses-enron-wirecard-short-seller-india-2023-2">$110 billion in market value off the group's 10 listed companies</a> in the space of just a fortnight.The <a href="https://markets.businessinsider.com/news/stocks/top-5-wealthiest-people-earth-gautam-adani-lost-60-billion-2023-2">market turmoil has also erased over $60 billion</a> of chairman and founder Gautam Adani's personal fortune. He was the world's third-richest person when Hindenburg's report was published but has slipped to 21st position in the two weeks that followed, according to the <a href="https://www.bloomberg.com/billionaires/" target="_blank" rel="noopener">Bloomberg Billionaires Index</a>.By repaying the loan early, he could be trying to demonstrate to investors that he still has significant financial strength despite the ongoing sell-off.Adani said it had paid off its debt ahead of schedule "in light of recent market volatility and in continuation of the promoters' commitment to reduce the overall promoter leverage backed by Adani Listed Company shares."Read more: <a href="https://markets.businessinsider.com/news/stocks/gautam-adani-hindenburg-research-explained-stock-market-outlook-investing-analysis-2023-1">Everything you need to know about Gautam Adani and Hindenburg after the short seller's fraud allegations burnt a $72 billion hole in the richest Asian's empire</a>

Adani says it will repay over $1 billion in debt ahead of schedule in a bid to halt stock-market rout

<ul class="summary-list"><li>Billionaire Gautam Adani successfully completed the $2.5 billion share sale of his flagship company on Tuesday, per Bloomberg.</li><li>The stock offering became a crucial confidence test after a short-seller report triggered a massive rout in Adani group stocks. </li></ul>India's embattled Adani Group pulled through with the $2.5 billion share sale of its flagship company even after the conglomerate faced a market rout amid fraud allegations by a short seller.The offering by Adani Enterprises, the country's largest follow-on share issue, was fully subscribed Tuesday, thanks to some late bids from institutional investors, <a href="https://www.bloomberg.com/news/articles/2023-01-31/adani-share-sale-fully-subscribed-after-last-minute-jump-in-bids" target="_blank" rel="noopener">Bloomberg reported.</a> Demand from retail buyers remained poor, according to the report, following a massive selloff in Adani companies over the past week.Billionaire Gautam Adani's business empire came under attack over the past week from Hindenburg Research, which in a report published January 24 accused the conglomerate of "<a href="https://hindenburgresearch.com/adani/" target="_blank" rel="noopener">pulling the largest con in corporate history</a>" — saying the group had engaged in "brazen stock manipulation" and accounting fraud.That sent the shares of Adani group companies tumbling in the following days, wiping out close to $70 billion in market value. The group dismissed the report as "a malicious combination of selective misinformation and stale, baseless and discredited allegations," according to a <a href="https://www.adanienterprises.com/newsroom/media-releases/Media-Statement-on-Hindenburg-Research-Report" target="_blank" rel="noopener">statement</a> by CFO Jugeshinder Singh last week. The secondary share sale's successful completion Tuesday comes after the group had only secured 3% in bids the day before, <a href="https://www.reuters.com/markets/deals/indias-adani-enterprises-enters-final-day-crucial-25-bln-share-sale-2023-01-31/" target="_blank" rel="noopener">Reuters reported</a>."This looks like high-net-worth people Adani reached out to for support for the [offering] came through," one Mumbai-based broker <a href="https://www.ft.com/content/d6435e29-1da7-4d83-a3cc-ed26e32e46db" target="_blank" rel="noopener">told</a> the Financial Times on Tuesday. The success of the stock offering will help the company widen its shareholder base and cut its debt. But it's also a sign that investors have stuck by the Indian conglomerate despite Hindenburg's allegations.The share sale was a critical moment for founder Adani, Asia's richest person who saw his wealth <a href="https://markets.businessinsider.com/news/stocks/gautam-adani-net-worth-billionaire-world-richest-list-hindenburg-shortseller-2023-1">sink by nearly a quarter</a> last week in the aftermath of the short-seller report. But the drop in fortunes is not just for the group's boss, as other Indian billionaires are<a href="https://www.businessinsider.com/adani-ambani-bad-month-indian-billionaires-lost-billions-2023-1"> also suffering</a> from falling share prices in the companies they have top stakes in. The decline in South Asian market sentiment is also reflected in India's benchmark share index, the <a href="https://markets.businessinsider.com/index/sensex">Sensex,</a> which is down by almost 3% so far this year.

Adani pulls through with $2.5 billion share sale amid a stock-market storm sparked by Hindenburg's fraud allegations

<ul class="summary-list"><li>Adani Power will scrap its plans to buy a coal plant in central India for $850 million, according to a report.</li><li>Adani and DB Power agreed to drop the deal after a deadline to meet the required conditions expired, Bloomberg reported, citing people familiar with the matter.</li></ul>The embattled Adani Group has scrapped its plans to buy a coal plant in central India for $850 million, according to a report by Bloomberg, as the conglomerate reels from a scathing short-seller report that triggered a stock-market storm.Adani Power, a group company, and DB Power agreed to drop the deal after a deadline to meet the required conditions expired Wednesday, <a href="https://www.bloomberg.com/news/articles/2023-02-16/adani-power-is-said-to-scrap-850-million-coal-plant-purchase?srnd=markets-vp" target="_blank" rel="noopener">Bloomberg reported</a>, citing people familiar with the matter. "We wish to inform that the long stop date under the memorandum of understanding dated August 18, 2022, has expired," Adani Power said in a regulatory filing on Wednesday. The company didn't specify whether the agreement would be renegotiated or the date would be extended if at all.The acquisition deal was signed in August last year and the transaction was set to take place at the end of October, but its deadline was extended four times since then until its eventual expiration this week, according to media outlets.This development comes in the wake of US short seller Hindenburg Research's bombshell report published on January 24 that accused the Adani Group of <a href="https://hindenburgresearch.com/adani/" target="_blank" rel="noopener">"pulling the largest con in corporate history"</a> by engaging in stock manipulation and accounting fraud.Although the Indian conglomerate has denied the claims, the stock turmoil that followed has <a href="https://markets.businessinsider.com/news/stocks/adani-short-seller-hindenburg-gautam-stock-rout-india-conglomerate-2023-2">wiped out the group's market valuation by $120 billion. </a>

Adani reportedly abandons plans for an $850 million coal plant buyout, as the conglomerate still reels from a stock-market rout sparked by Hindenburg

<ul class="summary-list"><li>Short-seller Hindenburg has attacked Adani's use of small auditors in a report alleging fraud.</li><li>The Indian conglomerate dropped Deloitte for the 12th largest auditor in the UK, per Accountancy Age.</li></ul>Adani Group cut its audit bill in the UK nearly in half by dropping Big 4 accounting group Deloitte for the country's 12th largest firm.<a href="https://www.ft.com/content/dd03f08a-a7e5-4120-bff0-30e910191695" target="_blank" rel="noopener">Corporate filings first analyzed by the Financial Times</a> and seen by Insider show the embattled Indian conglomerate, in turmoil following a report by short-seller Hindenburg into its business practices, used <a href="https://s3.eu-west-2.amazonaws.com/document-api-images-live.ch.gov.uk/docs/RCmugfYqOdFp-d_f91g_e2vIbxSoG8J7JBcuNANLyBE/application-pdf?X-Amz-Algorithm=AWS4-HMAC-SHA256&amp;X-Amz-Credential=ASIAWRGBDBV3G5DDJNWT%2F20230206%2Feu-west-2%2Fs3%2Faws4_request&amp;X-Amz-Date=20230206T090651Z&amp;X-Amz-Expires=60&amp;X-Amz-Security-Token=IQoJb3JpZ2luX2VjELX%2F%2F%2F%2F%2F%2F%2F%2F%2F%2FwEaCWV1LXdlc3QtMiJGMEQCIHlUXQ8FBGpU80VbkPZdOIWQDxwpjka1XzjrBhOuuhBkAiAgIOopE%2BtKx1jOkBNSD0M%2Fzqc7UkBi5JNb4%2BRTx%2FSVAirNBAg9EAQaDDQ0OTIyOTAzMjgyMiIM9o6EyAmSFIbRX%2BqBKqoEjDm38sIePEaH%2FSBwfNg33mdXJkNnqX95C1mLIy0eNpLWII9vLcRKBz6WAIN0VnweML9PjXaYcdchNCFv64Iru1RnrXMIk5E2Dp4yyt8xSU5kTZ7lIwZ5MtbrGr3tmFrLI%2BIGL6F7nbfYPRWbQjdZ571zM45abk7GHOtQnvVcBI%2BuDpmeifK%2FSBqzjjwx24eecb6r%2BS52n5oT1lMf6%2Fm0SYeaSZmkg%2FV4IY0ge1Ksg2dYj6TLhphfKfldwAv1JZ%2BzKRVV3x7mNhUIQ0naAmCFkm2Vas8ZokovfzZJd6zP2mgHogr%2Fosant3gEv9F%2BHKNYcr3dg0GrNLSvdWHv63TrtzPYQ15fNk8KDZUY005uQhU7ZiPXPekAInp%2FRqM%2F8%2BqJFp3doDSXp9aHSQSBTf%2FOHvt%2BNMrnTHgfCRAkOUUAa3lURc8c2Pciauz%2FkpAb51nZDVgGJDW2%2B5QUGXGwo6ejoWphtlPgo9bwlfNw9eGPiSkCDQEPVz%2FsRF5u4Knw4d5IclpbnnUiON%2BuhsrBBvHROWDK7pP9a0AZSP%2FubG%2BFaW4DGlbDFkul27zcH2Od87egin5kuoJYSV0VKqjMtl6wcJYD26xj0jN3TQB7yA20Mqq%2B3cFfhiaYX0hbffTAL3oHYgPYx1ORfcny80DCVVhodpFiU6SJ5faYFBr64mA0AMK%2Bdqmywju3aGKY6NW9Ps8Ym%2FZ0JVSaXk%2BoT0gqYhaXHjdCP4xa5S5dAD0w8f2BnwY6qgHJakJ4y12PscBeUKzRI%2Fq%2BELkERaI90kqeSxlXI0bySDTzVkjhfAplcQNJGzcUwnQVB3wrAnddPFqVH5RBPlU9UYJgxrj4DfxKDGPPmlT6AI9LK2UPYUlOIz7mtdaMnqsS9cib2gWWUM9EvG0KNhveaJKx8Z4F%2BGJmfPII8Chk8AeyS97BbEc%2BnHWcztdYFBaOnbaKJcb3LM88cFKdr9C6yX0L4UvHx8VlJg%3D%3D&amp;X-Amz-SignedHeaders=host&amp;response-content-disposition=inline%3Bfilename%3D%22companies_house_document.pdf%22&amp;X-Amz-Signature=0597164d39e9269216f87fab6778f7bceec8a96d2686470b78dd0bc100dde584" target="_blank" rel="noopener">Deloitte for audits of its 10 UK-listed companies under Adani Energy Holdings Limited in 2021</a>.Last year, the <a href="https://s3.eu-west-2.amazonaws.com/document-api-images-live.ch.gov.uk/docs/97OpF7n4uSfv50UjmVGGofF7KFROWQePqXH5rDv5RRA/application-pdf?X-Amz-Algorithm=AWS4-HMAC-SHA256&amp;X-Amz-Credential=ASIAWRGBDBV3P4CNJAY4%2F20230206%2Feu-west-2%2Fs3%2Faws4_request&amp;X-Amz-Date=20230206T090649Z&amp;X-Amz-Expires=60&amp;X-Amz-Security-Token=IQoJb3JpZ2luX2VjELj%2F%2F%2F%2F%2F%2F%2F%2F%2F%2FwEaCWV1LXdlc3QtMiJHMEUCIGeNUlu8%2F8CGiRXyzmoW4dBoyP5aE4lFrSx3gMLXiFuWAiEAhhWeB8K3dbLWuIJK045Zd9FZ2zH%2F2g1GE12%2FvSrjsKkqzQQIQBAEGgw0NDkyMjkwMzI4MjIiDE%2BHCe%2FCbKN7iPPRGSqqBMetEsHS0J%2FtzUkHJwmPlNOBJyBtFez6zBMuRea%2B%2BlkDJGZ3NPiAZHuIWqsiStxYt7oxUYPmGgHQOrSUmLVkXXwXEiaYbBUVi3zRVyWfWOkiuYaczOSJhURCus4C0eLtErxVLcmIZ5miTtcZ%2Bbt%2B8ENTA3JEaW14aW4AWy1J%2BBbxuRrp%2B5qkZ0hUDSfYpyPxJAi%2FPRRA1p8JIoDeX7Pyrqhmy5gib2oKaCbSecJYp8pURfN5KofSXX1v3wHfPEYpeBl9CWfIbO9yl9sqyNR5FYSL2a0IMCirKMREbu2ZzDVYdQdxq4h%2BDAWKKLOG%2F8hjuOwg2qNRvpft1ziHNXWILO4PbQs2o2kdNfDqVOoTjyYTRdQJJWcTZYSBIMNSD3QhZUdBcfBftWRZa4iU4sBUkjO5j5bfMmRnT0bnrltGnOAz4VV54RnsGnWjpeGnNMwNvWNmXFzavrNn5o291257UHV0PA4%2Bir9oiZg2u29wP%2BHGJkgb9vby60gMmN2rshkhpLVmoZjspcn5EFqCERP33EpJj%2BTM2WCq7fg9XGfwsfLhbIY9KM8857oyhhu%2FSFCUubsE%2FJemTMzbg6xmxdZdqAu1J%2FnqdsNNibmofHyC8rSlp2jWt5p%2F8ebqYpYNw000xwLMRKohM80%2FIgMWyeKDbwe0qN4XXMte9yNCiFrYMgrUwGhcCg35tuni5m8LmFOZHj0DuxZDC08AkRIoQf61yCY6%2Bqe7XKAmV4WNMLPRgp8GOqkBTY5TWqy6jLvmGVb%2FU5nHWwsZhkbb%2BpAJkP6bMmpnsbCrf70O%2FfUUWNBRjiAQ4B2dnq66VJaLSHDSGyoyrVtzMEaqMhMChhQu0OrM%2FFjmwRf0kEGMoxlqNHHHgagYhfeEpGCiD7FhntJ581ZGIwMBrF8GUHrOExCu4t3knlhhrH%2BQuhpiIufcfgvmcwa98fbaO%2FljLT0keNFdm7Yqa0FOIxwPCoIu78eMJw%3D%3D&amp;X-Amz-SignedHeaders=host&amp;response-content-disposition=inline%3Bfilename%3D%22companies_house_document.pdf%22&amp;X-Amz-Signature=9b6781af95d9f2075de410134cf778fe8b32777ff0ded5d4c013af76fb552803" target="_blank" rel="noopener">group switched to Crowe UK to handle its audits</a>. Adani's audit bill subsequently dropped from £257,000 (around $309,000) in 2021 to £143,000 (around $172,000) in 2022. Crowe UK audited Adani's UK-listed renewable energy companies after the Indian group switched from Deloitte, following its acquisition of the group of power plants for <a href="https://www.adanigreenenergy.com/newsroom/media-releases/agel-completed-the-acquisition-of-sb-energy-holdings-ltd" target="_blank" rel="noopener">$3.5 billion from SoftBank Group and Bharti Enterprises in 2021</a>.<a href="https://www.crowe.com/uk/about-us/industry-recognition-" target="_blank" rel="noopener">According to its website</a>, Crowe UK is the country's ninth-largest accounting firm by a measure of fee income. A <a href="https://www.accountancyage.com/rankings/top-5050-accountancy-firms-2022/" target="_blank" rel="noopener">ranking by trade publication Accountancy Age</a> listed Crowe as the 12 biggest firm in the UK. The global arm of Crowe <a href="https://www.accountancyage.com/rankings/top-25-international-networks-2022/" target="_blank" rel="noopener">sits outside the world's top six accountancy firms</a> in Accountancy Age's international ranking.This clashes with <a href="https://www.adanienterprises.com/-/media/Project/Enterprises/Media/Adani-Response-to-Hindenburg-January-29-2023.pdf?la=en" target="_blank" rel="noopener">Adani's 413-page rebuttal</a> to Hindenburg's report, where it said its portfolio companies "follow a stated policy of having global big 6 or regional leaders as Statutory Auditors."Hindenburg has accused the Indian conglomerate of stock market manipulation and fraud and highlighted several unusual business practices, as it revealed it held a short position on Adani stocks. One of the "key accounting red flags" outlined by Hindenburg in its scathing report into Adani was the <a href="https://markets.businessinsider.com/news/stocks/adani-young-auditors-23-years-old-100-billion-companies-hindenburg-2023-2">group's use of a small audit firm</a> made up of several employees in their early twenties to audit the accounts of Adani Enterprises and Adani Total Gas, which were at one point worth a combined $100 billion in market value. The revelations have prompted one of Adani's partners, France-based TotalEnergies, <a href="https://totalenergies.com/media/news/press-releases/totalenergies-statement-its-investments-india" target="_blank" rel="noopener">to say</a> the Indian giant had asked a Big 4 accounting firm for a "general audit" of its accounts, as it scrambles to recover from a crisis that has wiped out more than <a href="https://fortune.com/2023/02/03/adani-group-enterprises-shares-hindenburg-report-price-stock-chart/" target="_blank" rel="noopener">$118 billion in the groups' collective market value in the last fortnight</a>.Crowe UK and Adani Group didn't immediately respond to Insider's requests for comment.

Adani cut its UK audit bill in half by dumping a Big 4 firm for a much smaller rival, filings show as scrutiny of its safeguards deepens

Industry bodies representing the Real estate investments trusts (REITs) and alternate capital on Monday came in support of embattled Sebi chief Madhabi Puri Buch facing allegations by US short-seller Hindenburg Research of having stakes in obscure offshore funds linked to Adani group. <keyword id="21027897" type="General" weightage="20" keywordseo="Indian-REITs-Association" source="keywords">Indian REITs Association</keyword> (IRA) said that claims made by the US-based short-seller suggesting that the REIT framework made by markets regulator Sebi serves the interests of a select few are "baseless and misleading". In fact, the association has commended Sebi and its leadership for crafting a "rigorous regulatory environment" that includes comprehensive periodic reporting requirements, mandatory independent valuations, and strict governance standards. "Developed in consultation with all market participants, this framework ensures the highest levels of investor protection for both -- domestic and international institutional investors, as well as retail investors," it said. The Indian Venture and Alternate Capital Association (IVCA) also said it stands firmly behind Buch in the "challenging times" and added that the markets regulator has shown an "unwavering commitment to market integrity, regulatory governance, and investor protection". The support from the two bodies comes a day after mutual fund lobby grouping Amfi (Association of Mutual Funds in India) on Sunday backed Buch, saying the short-seller's report is an attempt to undermine Buch's contribution to the Indian capital market and the country's economic progress. "Creating a trust deficit in the market ecosystem must be seen for what they truly are -- attempts to create sensation by connecting random events done in the past," the industry body said. Hindenburg Research on Saturday launched a broadside against the Sebi chairperson, alleging she and her husband had stakes in obscure offshore funds used in the alleged Adani money siphoning scandal. The short-seller alleged that Buch and her husband Dhaval <keyword id="22743439" type="General" weightage="20" keywordseo="Dhaval-Buch" source="keywords">Dhaval Buch</keyword> had invested in one of the funds which was allegedly being used by Vinod Adani-- elder brother of Adani Group's Gautam Adani. It also flagged Dhaval's association with private equity major Blackstone, a promoter of multiple real estate investment trusts (REITs) and Sebi's continued pitch for the new investment avenue. Buch and her husband denied the allegations as baseless and asserted their finances are an open book. Securities and Exchange Board of India (Sebi) too defended its chairperson, saying Buch had made relevant disclosures from time to time and she "had also recused herself in matters involving potential conflicts of interest." Sebi has said that only one among 24 investigations into the Adani Group are pending. The Adani Group has termed the latest allegations malicious and based on manipulation of select public information. The company said it has no commercial relationship with the Sebi chairperson or her husband. Without naming Hindenburg, an IRA statement said, "Recent claims suggesting that the REIT framework serves the interests of a select few are baseless and misleading." The statement said after coming into being in 2014, there are four listed REITs at present managing assets of over Rs 1.4 lakh crore and serving over 2.4 lakh unitholders. Prominent global institutional investors have invested in REITs, it said, adding that their participation strengthens the trust and credibility of India's financial system. In its statement, the IVCA said Sebi plays a crucial role in maintaining the integrity and stability of our financial ecosystem. "We believe that the recent allegations made by Hindenburg are unwarranted and do not reflect a deep understanding of the Indian regulatory environment," it added. 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Hindenburg allegations: Sebi chief gets backing of REIT and alternate capital industry bodies

New Delhi, Equity investors became richer by Rs 3.43 lakh crore on Friday amid an overall positive trend in the market and the benchmark Sensex jumping nearly 900 points. The BSE Sensex zoomed 899.62 points or 1.53 per cent to settle at 59,808.97 points. During the day, the benchmark rallied 1,057.69 points or 1.79 per cent to 59,967.04 points. The market capitalsation of BSE-listed firms rose Rs 3,43,173.59 crore to Rs 2,63,42,218.11 crore. "The market had more reasons to cheer today than to worry about concerns regarding inflation. PSU banks led the sectoral rally as reports of foreign investments in Adani stocks helped the sector in recouping the dampened sentiment. "The sentiment was further lightened as FIIs turned in strong buyers," Vinod Nair, Head of Research at Geojit Financial Services, said. Foreign Portfolio Investors (FPIs) bought shares worth Rs 12,770.81 crore on Thursday, according to exchange data. The embattled Adani Group has sold minority stakes in four of its listed companies to US-based GQG Partners for Rs 15,446 crore as the conglomerate, recovering from a sell-off triggered by a short-seller report, looks to shore up liquidity ahead of the USD 2 billion debt repayment due in the coming months. Also, the Indian services sector expanded at the strongest rate in 12 years in February supported by favourable demand conditions and new business gains, a monthly survey said on Friday. From the Sensex pack, State Bank of India, Bharti Airtel, Reliance Industries, ITC, Tata Steel, IndusInd Bank, HDFC Bank, Tata Motors, <keyword id="6653" type="General" weightage="50" keywordseo="icici-bank" source="Orion">ICICI Bank</keyword>, HDFC and Titan were the major gainers. Tech Mahindra, UltraTech Cement, Nestle and Asian Paints were the laggards. In the broader market, the BSE smallcap gauge climbed 0.68 per cent and midcap index jumped 0.58 per cent. All the sectoral indices ended in the green, with services rallying 3.17 per cent, bankex jumping 2.13 per cent, utilities (1.84 per cent), financial services (1.76 per cent), commodities (1.69 per cent) and power (1.60 per cent). In Asian markets, Seoul, Japan, China and Hong Kong ended in the green. Equity markets in Europe were trading in the positive territory. The US market had ended higher on Thursday.

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