PARIS: French oil and gas major TotalEnergies said Friday its capital exposure to troubled Indian conglomerate Adani was “limited” at $3.1 billion.

Adani’s market capitalisation has sunk by more than $120 billion since US short-seller Hindenburg Research released an explosive report last week accusing the group of accounting fraud and boosting its share prices.

Indian tycoon Gautam Adani’s group has called the allegations a “lie”.

TotalEnergies owns a 50-percent stake in Adani Total Private Limited, 37.4 percent of Adani Total Gas Limited, 19.75 percent of Adani Green Energy Limited and 50 percent of AGEL23.

“TotalEnergies’ exposure resulting from these stakes is limited,” the French firm said in a statement.

India’s Adani tries to allay concerns as lenders step up scrutiny

TotalEnergies said its stakes represented 2.4 percent, or $3.1 billion, of its capital employed at the end of December and just $180 million of net operating income last year.

“TotalEnergies’ investments in Adani’s entities were undertaken in full compliance with applicable - namely Indian - laws, and with TotalEnergies’ own internal governance processes,” the statement said.

Trading in shares of the Indian group’s flagship firm Adani Enterprises, as well as Adani Total Gas and Adani Green Energy, was suspended on the Bombay Stock Exchange on Friday when they hit their limits.