All 10 stocks of Adani Group fell on Tuesday after media reports triggered fresh concerns about the embattled conglomerate’s debt levels.
Shares of Adani Enterprises, the group’s flagship company, fell the most with 7.1 per cent to close at Rs 1,602 apiece, followed by Adani Ports & SEZ, which declined 5.7 per cent to end the day at Rs 594 per share. Six other group companies finished at their 5 per cent lower trading limit while shares of ACC and Ambuja Cements fell by 4.2 per cent and 2.9 per cent, respectively.
As a result, the combined market capitalization (m-cap) of the group firms declined by over Rs 50,000 crore. A news report suggested that the ports-to-power conglomerate is trying to renegotiate the terms of loans worth $4 billion which they took last year. Another report raised doubts about the group’s $2.15 billion loan repayment claim. “Despite the Adani Group's claim of “complete” repayment of $2.15 billion in share-backed debt, regulatory filings show that banks have not released a significant portion of the promoters' shares held as collateral, indicating that the debt has not been fully paid off,” said a report by website The Ken. The NSE sought a clarification from Adani Enterprises on the report.
“The exchange has sought clarification from Adani Enterprises with respect to a recent news item captioned ‘The Adani Group wants you to believe it has repaid all its loans against promoters’. The response from the company is awaited, the NSE said. The group has been on a sticky wicket ever since the US-based short seller Hindenburg Research, in a report, alleged — among other things — stock manipulation and concerns about its debts. The report said the key listed Adani companies have substantial debt and are over-leveraged.
Following the report, the group’s m-cap had plummeted by over Rs 12 trillion ($150 billion).