investors like GQG and Abu Dhabi conglomerate International Holding
IHC
into some of its companies, helping to dilute the family’s tight shareholding. The tycoon also paid off loans backed by stock: only 2.4% of the shares in Adani Ports, for example, remain pledged as of the September quarter, down from 17.3% at the end of December 2022.
The reckoning stress tested concerns about the group’s rapid growth, leverage and valuations. While net debt remains largely unchanged at around $22 billion, EBITDA – a rough proxy for cash flow – has risen, reducing the consolidated ratio from 3.3 times to 2.5 times. The four largest businesses by market capitalisation trade between 89 and 202 times trailing earnings, per LSEG data. While high, those multiples are lower than the 315 to 845 times before Hindenburg made a splash.
Meanwhile, Adani’s blue-chip backers including TotalEnergies
TTE
, Wilmar International
F34
and its coterie of global banks including Standard Chartered
STAN
and Singapore’s DBS
D05
remained loyal. And Florida-based GQG Partners, which made big bets on the conglomerate this year, has seen the value of its investments in five group companies soar this year.
IHC
into some of its companies, helping to dilute the family’s tight shareholding. The tycoon also paid off loans backed by stock: only 2.4% of the shares in Adani Ports, for example, remain pledged as of the September quarter, down from 17.3% at the end of December 2022.
The reckoning stress tested concerns about the group’s rapid growth, leverage and valuations. While net debt remains largely unchanged at around $22 billion, EBITDA – a rough proxy for cash flow – has risen, reducing the consolidated ratio from 3.3 times to 2.5 times. The four largest businesses by market capitalisation trade between 89 and 202 times trailing earnings, per LSEG data. While high, those multiples are lower than the 315 to 845 times before Hindenburg made a splash.
Meanwhile, Adani’s blue-chip backers including TotalEnergies
TTE
, Wilmar International
F34
and its coterie of global banks including Standard Chartered
STAN
and Singapore’s DBS
D05
remained loyal. And Florida-based GQG Partners, which made big bets on the conglomerate this year, has seen the value of its investments in five group companies soar this year.