According to a report on Wednesday, a company document from Adani Group revealed that numerous prestigious Japanese and European banks have reiterated their support for the troubled conglomerate after it was severely damaged by a negative report from a US short seller.
The seven listed companies of the Gautam Adani-led organisation have lost approximately $120 billion in market value since a US short seller's report on January 24 accusing it of stock manipulation and inappropriate use of offshore tax havens, both of which it has denied.
"Global banks such as MUFG, SMBC, Mizuho, Standard Chartered, Barclays, DBank (Deutsche Bank), consortium lender banks have reaffirmed confidence in Adani group," said the document which stated its goal was to assuage investors, reported Reuters.
In the past month or two, shares of listed Adani companies have recaptured some lost ground as a result of debt repayment and an investment of Rs 15,446 crore from boutique investment firm GQG Partners.
The ports-to-power conglomerate is fighting a Sebi inquiry into the group's related party operations and the claims made by Hindenburg, which is being conducted in response to a Supreme Court order.
The company committed to reaching 20% year-over-year growth in core earnings and to diversify its debt portfolio in a series of roadshows from Hong Kong to New York held in recent weeks for fixed income investors, the paper stated.
The memo, which Reuters reviewed, did not go into detail on how the international financiers reaffirmed their dedication to the Adani Group. The organisation already has business contacts with several major international banks, which the conglomerate has previously cited as evidence of its resilience in response to Hindenburg's accusations.