InvestorQ : What has been Adani’s response to the allegations of too much leverage in Adani group stocks?
vidhya Laxmi made post

What has been Adani’s response to the allegations of too much leverage in Adani group stocks?

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sarah Leo answered.
3 weeks ago
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In a 15 page response to the allegations made by CreditSights, the research arm of Fitch, Adani has buttressed most of the leverage accusations made. It has highlighted that the Adani group had substantially improved its net debt to operating profit ratio and even halved loans from the public sector banks.

The Adani group has also specifically pointed out that its net debt to EBITDA ratio had fallen from 7.6X to 3.2X in the last nine years, which was not highlighted in the report. The group’s gross debt stood at Rs1.88 trillion and net debt at Rs1.61 trillion as of March 2022. More importantly, the pledged shares of promoters had reduced sharply over the years.

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