Moody’s Investors Service on Friday changed outlook for four Adani Group companies. In a media release, the rating agency said it has changed the outlook on certain Adani group companies to negative from stable, while maintaining the stable outlook on other four companies. Outlook has been changed to negative from stable for Adani Green Energy Limited (AGEL), Adani Green Energy Restricted Group (AGEL RG-1), Adani Transmission Step-One Limited (ATSOL), Adani Electricity Mumbai Limited (AEML).
Outlook has been kept stable for Adani Ports and Special Economic Zone Limited (APSEZ), Adani Ports and Special Economic Zone Limited (APSEZ), Adani International Container Terminal Private Ltd (AICTPL), Adani Green Energy Restricted Group (AGEL RG-2) – comprising Wardha Solar (Maharashtra) Private Limited, Kodangal Solar Parks Private Limited and Adani Renewable Energy (Rj) Limited.
It has also been kept stable for Adani Transmission Restricted Group 1 (ATL RG1) – comprising Barmer Power Transmission Service Limited; Raipur-Rajnandgaon-Warora Transmission Ltd; Sipat Transmission Limited; Thar Power Transmission Service Limited; Hadoti Power Transmission Service Limited; ChhattisgarhWR Transmission Limited.
“These rating actions follow the significant and rapid decline in the market equity values of the Adani Group companies following the recent release of a report from a short-seller highlighting governance concerns in the Group,” the release said.
Over the past week, share prices of companies in the Adani Group have dropped significantly. The report alleged stock manipulation and fraud by the conglomerate.
The Adani Group has attacked Hindenburg as “an unethical short seller” and stated that the report by the New York-based entity was “nothing but a lie”.
The continued sell-offs in the group’s stocks led its flagship firm, Adani Enterprises Limited, to cancel a fully subscribed Rs 20,000 crore follow-on public offer.
