MUMBAI: On Tuesday, the Adani group’s stocks fell precipitously, losing more than 523 billion rupees ($6.4 billion) in market value, the greatest drop since early February. This was due to increasing worries about the ports-to-power conglomerate’s capacity to pay back its loans.
A more than 9% decline occurred in Adani Ports and Special Economic Zone Ltd, taking the stock below the price GQG Partners paid earlier this month to acquire a stake. According to sources it did not name, the organisation is attempting to renegotiate the conditions of loans totaling $4 billion.
The study resurrects worries that were raised in January following charges of fraud by US short seller Hindenburg Research regarding the troubled group’s access to capital. Using roadshows, the sale of equity in four businesses to GQG partners, loan repayments, and spending reduction plans, Gautam Adani aimed to reassure investors.
Arun Kejriwal, the founder of Kejriwal Research & Investment Services, referred to investors who recently bought Adani shares by saying, “There will always be risk when one goes bottom fishing.” “Except for Adani Ports, the risk here is pretty limited because the other three companies are trading above the level GQG Partners paid for.”
Adani could not be immediately reached for comment. According to The Economic Times, the group denied the claim that it was in negotiations regarding the terms of loans taken last August for the purchase of its cement assets.
Adani Power Ltd., Adani Green Energy Ltd., and Adani Wilmar Ltd. all saw a daily limit decline in share prices of 5%. Ambuja Cements Ltd fell more than 2%, while cement assets ACC Ltd fell 3.4%.