On Tuesday, all 10 of the Adani Group’s publicly traded firms were trading in the red, with roughly 5% declines in each of Adani Power, Adani Transmission, Adani Green Energy, and Adani Total Gas.
Adani Ports and Special Economic Zone shares slid 8.89% to trade at 573.20 per share, while shares of Adani Enterprises, the company’s flagship, were trading 7.53 percent lower at 1,593.30 each.
Adani Power shares dropped 5%, Adani Transmission shares sank 5%, Adani Green Energy shares slid 4.93 %, and Adani Total Gas shares dropped 5% on the NSE.
Adani Wilmar’s stock fell by 4.99 percent, NDTV fell by 4.73 percent, ACC fell by 4.45 percent, and Ambuja Cements down by 3.43 percent.
Over the day, many of the group firms reached their lower circuit limits.
The causes of the selloff
In response to a story by The Ken, the selloff in Adani Group equities resumed. The investigation called into doubt the veracity of the $2.15 billion loan repayment by the Gautam Adani-led ports-to-power company.
The study states that “regulatory documents show that banks have not released a major chunk of the promoters’ shares held as collateral, indicating that the debt has not been entirely paid off, despite the Adani Group’s assertion of “complete” repayment of $2.15 billion in share-backed debt.”
The article also stated that the Adani Group has only partially repaid the loan balance in order to avoid pledging additional shares and facing any repercussions from the lenders.
According to the report, banks have only released the pledged shares of Adani Ports & SEZ after the business announced its prepayment.
Over a month after the loan repayment, the banks have still not issued the shares of Adani Green and Adani Transmission that were pledged. This is extremely unusual because shares that have been pledged are typically released right away when a borrower pays off their debts, it continued.
