Adani's Mundra Power Plant under scanner with $1 billion debt

Adani's Mundra power plant has more liabilities than assets and has run up $1.8 billion of losses, as per a Bloomberg report which added that the conglomerate has deployed more than $1 billion of creative debt-financing to paper over the deficit and reassured investors and lenders that profits will come soon.

Adani Group stocks took a beating on the exchanges after US-based short seller Hindenburg Research last month made a litany of allegations, including fraudulent transactions and share price manipulation, against it.

The group has dismissed the charges as lies, saying it complies with all laws and disclosure requirements. 

Listed companies' shares of Gautam Adani-led conglomerate lost as much as $153 billion in combined market value amid Hindenburg rout, though bounced back last week.

Chairman Adani's personal wealth has tumbled by more than half to $49.8 billion, according to the sources.

Adani group management, including group chief financial officer Jugeshinder Singh, last month held roadshows in Singapore and Hong Kong to reassure investors that the company's finances are under control. These are to be extended to Dubai, London and the US from March 7 to 15.

The group is not seeking to refinance debt or inject capital, group chief financial officer Jugeshinder Singh told Bloomberg News on the sidelines of an investor roadshow in Hong Kong last week.