Shares in India’s Adani Group rallied on Tuesday a day after it prepaid some loans, bringing relief to investors that have seen $113.6 billion wiped off the conglomerate’s market value since a US short-seller published a critical report two weeks ago.
The group, led by billionaire Gautam Adani, has been roiled by days of market turmoil after Hindenburg Research on Jan. 24 alleged it had engaged in stock manipulation and used tax havens. It also said the group had unsustainable debt.
Adani Group has denied the allegations, saying it complies with all laws and has made necessary disclosures over time. Nonetheless, investors dumped its shares as concerns of financial contagion grew, reported
Moody’s rating agency has warned the share-price plunge could hit the group’s ability to raise capital, while India’s central bank has started checking on lenders’ exposure to it.
In a major setback for the billionaire, the market rout also forced Adani to shelve a key $2.5 billion share sale last week.