10 publicly traded firms make up the diversified Adani Group in India. It has produced a portfolio of world-class utilities and transport infrastructure with a presence throughout all of India. Gujarat serves as the home base for the Adani Group. The Group has established itself as the industry leader in its energy utility and transport logistics portfolio industries throughout the years, concentrating on large-scale infrastructure development in India with O&M procedures that are benchmarked to international standards.

It is the only Infrastructure Investment Grade issuer in India, with four IG-rated enterprises. Adani's fundamental concept of "Nation Building," which is motivated by "Growth with Goodness," an ideology for sustainable growth, is responsible for both its success and its position as a leader. Through the realignment of its companies with a focus on climate protection and an expansion of its community engagement through its CSR programme, Adani is dedicated to increasing its ESG impact.

The programme is built on the concepts of sustainability, diversity, and shared values. In spite of all of this, the Group is presently involved in a dispute over Adani shares overleveraged.

No chance of hidden leverage, according to Gautam Adani

Pledges on the secret shareholdings stated in Part 1 of the Hindenburg report may represent further concealed leverage inside the Adani empire, giving rise to the dispute around Adani shares overleveraged. Note that any encumbrance creation must go through the relevant shareholder's depository participant. The depository participant notifies the depository (National Securities Depository Limited / Central Depository Services Limited) of this as part of the required reporting procedure. The relevant data is also automatically entered into the stock exchange database.

New partners: Despite the Adani shares overleveraged issue

In just 4 years, the Adani Group has raised over $9 billion, having begun the capital transformation path for its core infrastructure portfolio in 2019. The initiative made it possible for long-only international investors to take part in the largest and fastest-growing infrastructure development project in the world, where Adani Portfolio provides a one-stop shop with companies spanning the infrastructure spectrum from utilities and energy to transportation and logistics. Among the listed firms that have drawn investments in it are:

• Adani Ports and Special Economic Zone Limited (APSEZ)

• Adani Green Energy Limited (AGEL)

• Adani Transmission Limited (ATL)

• Adani Total Gas Limited (ATGL) and

• Adani Enterprises Limited (AEL)

According to the Group's capital management philosophy, which encourages the involvement of long-term, strategic investors, Adani has drawn significant investments from companies such as GQG Partners (GQG), TotalEnergies (TTE), International Holding Company (IHC), and Qatar Investment Authority (QIA).

Adani Group says it made all the necessary disclosures

In October 2020, SEBI started investigating foreign investments into Adani's infrastructure, power, and port empire. The crux of the issue is whether Adani engaged in business and manipulated the value of his shares by using foreign-registered entities without appropriately declaring his affiliations. In the instance of the Adani shares overleveraged, Adani has consistently denied any misconduct and claimed to have made all necessary disclosures.

On 28th February 2023, trade in the main Adani Enterprises Ltd. stock saw gains of almost 8%, while Adani Green Energy saw gains of 3.75%. In response to claims made by US-based short-seller Hindenburg Research, which caused the stocks of Adani companies to plummet in recent trading days, the Adani Group rejected worries that its businesses were overleveraged.

Adani Enterprises (A.E.L.) stated in a "notice to investors" in its follow-on public offer (F.P.O.) that it has vehemently refuted every accusation in the study and views it as erroneous and unfounded.

The Group disputes the Adani shares overleveraged controversy

Gautam Adani's Group has touted an improved net debt-to-operational profit ratio and a more than halving of loans from public sector banks. The companies within the Group have consistently de-levered, as evidenced by the decline in the net debt to EBITDA ratio from 7.6 times to 3.2 times over the last nine years, according to a 15-page note sent in response to a CreditSights research that called Adani shares overleveraged.

The companies run on a straightforward but reliable and repeatable business strategy that emphasises capital management, operations and management, and development and origination. Private banks provided 31% of loans in FY2016; this percentage has since dropped to 11%. The rate of loans funded by bonds has increased from 14% to 50% currently. Adani has expanded his coal-to-ports enterprise to include airports, data centres, cement, aluminium and city gas.

Over the previous 10 years, Adani portfolio companies have consistently and effectively carried out an expansion plan that beat the sector.