Adani stocks erase $8.5 billion of market value, group seeks more time to repay loans
Sign up now: Get ST's newsletters delivered to your inbox
Adani Group stocks slumped on renewed concerns over the conglomerate’s ability to repay its debt.
PHOTO: REUTERS
Follow topic:
Mumbai - Adani Group stocks slumped to erase over 523 billion rupees (S$8.5 billion) in market value on Tuesday, the biggest decline since early February, on renewed concerns over the ports-to-power conglomerate’s ability to repay its debt.
Adani Ports and Special Economic Zone fell more than 9 per cent, dipping below the price GQG Partners paid to buy a stake earlier in March.
The group is seeking to renegotiate the terms of US$4 billion (S$5.3 billion) worth of loans, the Economic Times reported, citing people it did not identify.
The report revives concerns about the indebted group’s access to funds, which were brought to the fore following allegations of fraud by United States short-seller Hindenburg Research in February.
Mr Gautam Adani had sought to reassure investors with roadshows, selling stock in four companies to GQG Partners, loan repayments and plans to cut spending.
“There will always be risk when one goes bottom fishing,” said Mr Arun Kejriwal, founder of Kejriwal Research & Investment Services, referring to investors who bought Adani stock recently.
“The risk here is fairly limited because other than Adani Ports, the other three companies are trading above the level GQG Partners paid for.”
Adani Group could not be reached immediately for comments.
Economic Times said the group denied the report, which had said it was in talks over the terms of loans taken last August for the acquisition of its cement assets.
The shares of companies including Adani Green Energy, Adani Power and Adani Wilmar all fell by a 5 per cent daily limit.
Cement assets ACC fell 3.4 per cent, while Ambuja Cements dropped over 2 per cent. BLOOMBERG
