Mumbai: Adani Group shares rose Wednesday after the conglomerate rebutted reports about its ability to repay debt, easing renewed concerns about a crisis of confidence.
The group’s flagship Adani Enterprises advanced as much as 6.8 per cent while Adani Ports & Special Economic Zone added more than 5 per cent. Other group companies also gained, paring losses on Tuesday spurred by reports from the Economic Times and The Ken.
The ports-to-power conglomerate denied the reports in separate statements Tuesday, calling the Economic Times’ claims that the group is seeking to renegotiate the terms of $4 billion worth of loans “baseless speculation.” Later in the day, the company addressed The Ken report, saying it had paid off share-backed financing amounting to $2.15 billion and that the stock pledged for those facilities had been released.
The latest claims made by the local media come at an inopportune time for billionaire Gautam Adani’s empire. They cast doubt on the group’s ability to raise funds at a time when it is attempting to rebuild trust after short seller Hindenburg Research’s report alleging fraud and market manipulation wiped out more than $150 billion from its market value at one point.
“The company is doing the right thing by clarifying on newsflow, which is important. They are ticking all the right boxes by making their communication clear,” said Alok Churiwala, managing director of Mumbai-based Churiwala Securities. “Investors are still shaky about Adani stocks and we can see this lack of confidence as shares are reacting to every media report.”
Of 15 Adani USD bonds of tracked by Bloomberg, 10 fell as of 12:50 pm in Hong Kong. Adani International Container Terminal’s February 2031 notes declined 0.5 cents to 75.1 cents to the lowest since early February. Adani Ports’ bonds due in February 2031 slipped 0.3 cents.