The Adani Group, led by billionaire Gautam Adani, has announced that it possesses sufficient cash reserves to cover its debt obligations for over 30 months.
This statement comes in the wake of liquidity concerns following allegations of fraud by US short-seller Hindenburg Research, which had previously led to a significant drop in the conglomerate’s market value.
According to the group’s latest earnings report, released on Monday, the cash balance now represents 24.8% of its total debt, a notable increase from 17.7% reported a year ago.
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This uptick in liquidity is part of a broader strategy to reassure investors of the group’s financial health.
The conglomerate’s operational performance also showed strength, with EBITDA (earnings before interest, taxes, depreciation, and amortization) jumping by 33% to approximately 225.70 billion rupees for the quarter ending June 30.
This robust financial performance is crucial as Adani Enterprises Ltd., the flagship company, is contemplating a share sale to raise between 100 billion to 120 billion rupees.
This follows the successful $1 billion fundraising by its energy transmission arm, signaling continued investor interest despite the earlier turmoil.
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Adani group efforts to highlight its financial resilience and ongoing fundraising plans are aimed at countering the negative impact of the Hindenburg report, which accused the conglomerate of various malpractices.
Adani has consistently refuted these allegations, striving to rebuild trust and stabilize its market position.
