TotalEnergies’ valuation of its stakes in Indian conglomerate Adani Group companies has increased to $5.1 billion, led by the recent revival in the latter’s stock prices on Indian bourses.
The French energy giant earlier said that its exposure in Adani group entities stood at $3.1 billion, as of 31 December 2022.
“At the current price, these interests would be worth $5.1 billion, which is still a significant capital gain,” TotalEnergies said in a statement seen by Ratecaptain.
The Adani Group, owned by billionaire Gautam Adani, is in the middle of a financial storm with billions of dollars wiped off its market capitalisation this year, following corporate fraud allegations by US-based Hindenburg Research.
TotalEnergies said that its investments in Adani Group companies “were undertaken in full compliance” with applicable Indian laws and with the company’s own internal governance processes.
The energy supermajor was responding to French newspaper Le Monde’s report, which detailed allegations of financial irregularities that short-seller Hindenburg Research had earlier levelled against Adani.
TotalEnergies added its investments in the Adani Group are “being accounted for under the equity method”, and hence it “did not revalue its interests in publicly listed” Adani companies in its accounts in connection with the increase in the share price.
