- Countering Rahul Gandhi’s claim of Rs 20,000 crore coming in billionaire Gautam Adani’s shell companies, Adani group listed out details of the USD 2.87 billion stake sales in group firms.
- While investors invested USD 2.593 billion in group firms, promoters sold stakes to raise USD 2.783 billion.
- “We understand the competitive race to tear down Adani can be alluring. But we are fully compliant with securities laws and are not obscuring promoter ownership and financing,” the group said.
- US short-seller Hindenburg Research, had alleged accounting fraud and use of a labyrinthine network of shell companies to route funds into India to manipulate share prices of the group’s seven listed companies.
- While Adani group has denied all, which actively denied Hindenburg’s allegations, opposition parties and their leaders, including Gandhi.
A statement by the Adani group on Tuesday aimed at rebutting reports by an international publication, which apparently was the basis of Rahul Gandhi‘s statement late last month, questioning how “Rs 20,000 crore suddenly arrived in Adani’s shell companies.”
Countering Congress leader Rahul Gandhi’s claim of Rs 20,000 crore coming in billionaire Gautam Adani’s shell companies, Adani group listed out details of the USD 2.87 billion stake sales in group firms since 2019 and how USD 2.55 billion of this was ploughed back into business.
While investors such as Abu Dhabi-based global strategic investment company, International Holding Company PJSC (IHC) invested USD 2.593 billion in group firms such as Adani Enterprise Ltd and Adani Green Energy Ltd (AGEL), promoters sold stake in Adani Total Gas Ltd and AGEL to raise USD 2.783 billion. “These funds were reinvested by promoter entities to support the growth of new business and in portfolio companies such as Adani Enterprises Ltd, Adani Ports and Special Economic Zone Ltd, Adani Transmission Ltd and Adani Power Ltd,” the group said. “We understand the competitive race to tear down Adani can be alluring. But we are fully compliant with securities laws and are not obscuring promoter ownership and financing,” it said.
Adani said promoters raised USD 2 billion through the sale of 20 per cent stake in few companies. Prior to that, they had sold a 37.4 per cent stake in city gas arm, Adani Total Gas Ltd to the same French firm for USD 783 million. Adani said the funds came from sale of stake in Adani Total Gas. Also, they weren’t obscure entities because they are promoter held. Total Energies bought overseas investment vehicles of the promoters to make some of those investments.
US short-seller Hindenburg Research, had alleged that accounting fraud and use of a labyrinthine network of mostly Mauritius-based shell companies to route funds into India to manipulate share prices of the group’s seven listed companies or make their balance sheets look healthier.
While Adani group has denied all, which actively denied Hindenburg’s allegations, opposition parties and their leaders, including Gandhi, have been quick to seize on the allegations to target Prime Minister Narendra Modi and demand inquiries into Adani’s foreign connections.
Adani said it had publicly disclosed all details and reports on the investment of funds into group companies that had incorrectly mixed primary and secondary investment.
(With inputs from agency)
