New Delhi: Fitch Ratings on Friday said there is no immediate impact on the ratings of Adani entities and their securities following a short-seller report alleging malpractices at Adani group. In a statement, the rating agency said it expects no material changes to its forecast cash flow. "There are also no near-term significant offshore bond maturities," it said.
Earlier S&P Dow Jones Indices has said Adani Enterprises will be removed from the Dow Jones Sustainability Indices due to recent allegations of stock manipulation and accounting fraud that were levelled against the conglomerate. "Adani Enterprises (XBOM: 512599) will be removed from the Dow Jones Sustainability Indices following a Media & Stakeholder Analysis triggered by allegations of stock manipulation and accounting fraud," it said in a statement.
S&P Dow Jones Indices will make the changes to the Dow Jones Sustainability Indices, effective prior to the opening on February 7, 2023. This announcement by S&P Dow Jones Indices comes a week after a report by a US-based Hindenburg Research surfaced on January 24, claiming the Adani Group of having weak business fundamentals, allegations of stock manipulation and accounting fraud, among others.
The report raised concerns about shares of Adani group companies having a possibility of declining from their current levels, owing to high valuations. Following the report, the shares of all Adani Group companies have been consistently declining, though with varying degrees. (with Agency inputs)
