Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Adani shares see renewed selling on report of $400 million debt talks

Published 02/27/2023, 01:52 AM
Updated 02/27/2023, 02:06 AM
© Reuters

© Reuters

By Ambar Warrick

Investing.com -- Shares of companies under the Adani Group sank on Monday after a report said the Indian conglomerate was in talks to raise more debt funding, which raised renewed concerns over the firm’s stretched debt position.

Indian publication the Economic Times (ET) reported that Adani Group is in talks with creditors to raise up to $400 million in debt backed by its assets in the Carmichael coal mine in Australia. The conglomerate is in talks with several high-yield global credit firms over the matter, and has received a term sheet from lenders including Farallon Capital Management. 

The ET report dented the shares of Adani firms, given that it comes a month after short-seller Hindenburg Research criticized the firm’s stretched debt position in a report. 

Shares of Adani Enterprises Ltd (NS:ADEL), the conglomerate’s flagship firm, sank over 7% on Monday, while those of Adani Wilmar Ltd (NS:ADAW), Adani Power Ltd (NS:ADAN), Adani Total Gas Ltd (NS:ADAG), Adani Green Energy Ltd (NS:ADNA), and Adani Transmission Ltd (NS:ADAI) lost 5% each, hitting their intraday circuit breakers.

The conglomerate lost over $130 billion in value in the month since the release of the Hindenburg report, which also cost founder Gautam Adani his title as Asia’s richest man. The report had alleged that Adani’s listed firms had “substantial debt” which put the entire group on shaky footing, and had also alleged that shares in the seven listed firms under the group had an 85% downside on a fundamental basis. 

Adani had denied the allegations. But the group had also scrapped a $2.5B secondary offering by Adani Enterprises, after shares of the firm slumped well below the offer price. 

The Hindenburg report had also attracted regulatory scrutiny from Indian and foreign watchdogs, as saw index operator MSCI reassess Adani's weightage in some of its indexes. Recently, Reuters reported that the Australian Securities & Investments Commission was also looking into the short seller's allegations against Adani.

 

Latest comments

Rip
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.