Adani Group sought to reassure traders on Monday, saying it had robust cashflows and its enterprise plans had been totally funded, as an Indian regulator confirmed it was investigating a vital report by a short-seller that has battered the group’s shares.

Led by billionaire businessman Gautam Adani, the group’s seven listed shares have collectively misplaced about $120bn in market worth since a January 24 report by United States-based short-seller Hindenburg Analysis accused it of improper use of offshore tax havens and inventory manipulation, allegations the group has denied.

The turmoil continued on Monday, with shares within the listed corporations extending their losses.

In search of to calm traders, the conglomerate in an announcement to the Reuters information company mentioned the stability sheet of every of its unbiased portfolio corporations was “very wholesome”, including it had safe belongings and robust cashflows, with its enterprise plans “totally funded”.

“We’re assured within the continued potential of our portfolio to ship superior returns to shareholders,” Adani Group mentioned within the emailed assertion.

Bloomberg Information reported on Monday the group had halved its income progress goal and deliberate to scale down capital spending. An organization spokesperson instructed Reuters earlier within the day the report was “baseless, speculative”, with out elaborating.

On Monday Reuters information company reported citing unnamed sources that the group had appointed accountancy agency Grant Thornton for unbiased audits of a few of its corporations in a bid to discredit claims by Hindenburg. The appointment marks the primary main effort by Adani Group to defend itself.

The Adani disaster has sparked worries of economic contagion in India, protests in parliament the place legislators have demanded an investigation, rankings outlook downgrades of some Adani items, and solid a shadow on the group’s capital elevating plans. Gautam Adani has additionally misplaced his crown as Asia’s richest particular person.

Adani Group’s assertion mentioned, “as soon as the present market stabilises, every entity will evaluation its personal capital market technique.”

Regulator probe

The Securities and Alternate Board of India (SEBI) has been probing the market rout, together with analyzing commerce patterns and any potential irregularities within the $2.5bn share sale of flagship firm Adani Enterprises that the Adani group was pressured to cancel as a result of inventory’s plunge, Reuters has beforehand reported.

SEBI confirmed the existence of the investigation for the primary time in a Supreme Court docket submitting on Monday.

“SEBI is already enquiring into each the allegations made within the Hindenburg report in addition to the market exercise instantly previous and publish the publication of the report,” the regulator mentioned within the submitting seen by Reuters, including the matter was in early levels of examination.

Throughout a court docket listening to on Monday the place the Supreme Court docket heard public curiosity petitions that increase considerations about steep investor losses, Indian Solicitor Common Tushar Mehta, arguing on behalf of the federal government and SEBI, mentioned there was no objection if a panel was set as much as look at safety mechanisms for traders. The judges instructed him to come back again with the remit of such a panel and scheduled an extra listening to for Friday.

SEBI is ready to temporary federal finance ministry officers on February 15 on its investigation into the shelved share sale, two sources instructed Reuters on Monday. SEBI and the finance ministry didn’t reply instantly to Reuters’s requests for remark.

Makes an attempt to ‘reassure traders’

Final week, Moody’s downgraded the rankings outlook for some Adani corporations, whereas index supplier MSCI mentioned it will reduce the weightings of some in its inventory indexes.

On Monday, all shares of the Adani group had been below stress. Adani Enterprises fell 7 %, whereas Adani Complete Fuel, Adani Energy and Adani Transmission misplaced 5 % every.

Adani Complete, a three way partnership with France’s TotalEnergies, has misplaced 70 % for the reason that Hindenburg report, whereas Adani Enterprises is down 50 %.

Because the Hindenburg report’s launch, Adani Group has pay as you go a few of its $25bn debt and pledged to independently evaluation the short-seller’s claims, however the carnage in its securities has continued.

“The results of administration’s makes an attempt to reassure traders will take a minimum of three to 6 months to begin reflecting in share costs. Value harm has been important,” mentioned Avinash Gorakshakar, head of analysis at Profitmart Securities.

In Mumbai, roughly 100 political employees and activists of the opposition Communist Social gathering of India marched, shouting anti-Adani slogans and holding posters with cartoons of Adani and Prime Minister Narendra Modi.

Opposition critics accuse Modi’s authorities of giving undue favours to the Adani Group. The federal government and Adani each deny excessively shut ties.

“The impact of our protests is seen as Adani shares proceed to fall,” Feroze Mithiborwala, one of many protesters, mentioned.

In current days, considerations have additionally arisen concerning the publicity of Indian and international lenders to the Adani Group. In its rebuttal of Hindenburg’s allegations, the conglomerate had pointed to its worldwide banking relationships as an indication of its energy.

Singapore’s DBS Group mentioned on Monday it had a 1.3 billion Singapore {dollars} ($979m) publicity to Adani group corporations, out of which 1 billion Singapore {dollars} ($756m) was to finance its cement enterprise. DBS mentioned it was not involved about its publicity to the group.