Adani Group assures liquidity to meet debt obligations amid legal challenges
Ahmedabad/IBNS: Adani Group has reassured investors that its listed companies have sufficient cash reserves to meet debt obligations for the next 12 months.
This announcement comes as the conglomerate provides its first operational update since US authorities indicted founder Gautam Adani in a bribery case last week.
In its "half-yearly business compendium," Adani Group reported a strong financial performance, with earnings before interest, taxes, depreciation, and amortization (EBITDA) surpassing $10 billion for the first half of the fiscal year.
The company projects a full-year EBITDA of $12 billion.
"Each of our portfolio companies has enough liquidity to fulfill all debt servicing requirements for at least the next 12 months," the group stated on Monday (Nov. 25).
The report follows Adani's involvement in a criminal case where he and seven others are accused of orchestrating a bribery scheme to secure favorable solar power contracts worth over $2 billion in profits.
Adani Group has denied the allegations, labeling the US charges as "baseless" and vowing to pursue all legal avenues.
Shares of Adani's publicly listed companies took a significant hit following the US charges, losing over $20 billion in market value.
However, on Monday, Adani Enterprises and Adani Ports saw share price gains, rising 3.6 percent and 2.5 percent, respectively.
Despite this recovery, Adani Enterprises is down 21 percent since the beginning of the year, while Adani Ports has risen 11 percent over the same period.
While the share prices showed some rebound, the group’s dollar bond prices declined.
The 2027 maturity bonds for Adani Ports fell by 1.6 cents, trading at 88.98 cents on the dollar.
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