Hindenburg report impact. Adani group’s ability to raise capital could be reduced: Moody’s

Recent adverse developments are likely to reduce Adani group’s ability to raise capital to fund committed capex or refinance maturing debt over the next 1-2 years, according to Moody’s Investors Service

“Given the significant and rapid decline in the market equity values of the Adani Group companies following the recent release of a short-seller report highlighting governance concerns, our immediate focus is primarily on assessing the rated entities’ overall financial flexibility, including their liquidity position and access to funding to support refinancing and ongoing growth initiatives,” Moody’s said.

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“Nevertheless, these adverse developments are likely to reduce the group’s ability to raise capital to fund committed capex or refinance maturing debt over the next 1-2 years. We recognise that a portion of the capex is deferrable, and the rated entities do not have significant maturing debt until FY2025,” it added.

businessline had reported that at present, most banks, especially private players, are said to be declining fresh proposals from Adani Group, though the group can drawdown to sanctioned credit limits. It is understood that the total exposure to Adani Group as a percentage of net worth across leading banks is less than five per cent and, hence, not at alarming levels.