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Adani’s Mundra Power Plant under $1 billion debt scanner


Adani’s Mundra power plant has more liabilities than assets and has incurred $1.8 billion in losses, according to a Bloomberg report that added that the conglomerate has deployed more than $1 billion in creative debt financing to cover up the shortfall and defraud investors and lenders. reassured that the profit is coming soon.

But the accountant of Adani Power Ltd. can’t fully understand the math underlying this claim — and neither can the accounting experts who spoke to Bloomberg News. “The Mundra Thermal Power Plant – and its debt, which experts say is designed to protect Adani Power from extraordinary write-downs regardless of unit losses – is an example of this balancing act, where a single asset write-down can have cascading consequences” said the Bloomberg report. .

Shares of the Adani Group took a beating on the stock exchanges after US-based short seller Hindenburg Research issued a litany of allegations last month, including fraudulent transactions and stock price manipulation. The group has dismissed the allegations as lies and says it complies with all laws and disclosure requirements.

Companies in the Gautam Adani-led conglomerate lost a whopping $153 billion in combined market value amid Hindenburg’s defeat, though they bounced back last week. According to the Bloomberg Billionaires Index, Chairman Adani’s personal wealth has plummeted by more than half to $49.8 billion.

Adani group management, including Jugeshinder Singh, the group’s finance director, held roadshows in Singapore and Hong Kong last month to reassure investors that the company’s finances are under control. These will be expanded to Dubai, London and the US from March 7 to 15.

(With input from Bloomberg)

Joanna Swanson

Joanna Swanson is Europe correspondent at the Thomson Reuters Foundation based in Brussels covering politics, culture, business, climate change, society, economies and inclusive tech. With specific focus in breaking news, she has covered some of the world's most significant stories.