All listed Adani Group firms gain, Adani Enterprises shares jump 15 percent and Back
Adani Group has secured $3 billion credit from a sovereign wealth fund.
India’s Adani Group has told creditors it has secured a $3 billion loan from a sovereign wealth fund, two sources with knowledge of the matter said, as the embattled conglomerate seeks to ease concerns about its credit profile after a short-seller attack.
The credit line from the sovereign wealth fund could be upsized to $5 billion, said the two sources, citing a memo that was circulated to participants as highlights of a three-day investor roadshow ending on Wednesday.
Shares of Adani Total Gas jumped 4.85 percent, Ambuja Cements (3.32 percent), ACC (2.14 percent) and Adani Ports (1.61 percent)Stocks of all the ten listed Adani Group firms ended with gains on Wednesday, continuing the positive momentum amid a recovery in the broader equity market.
Adani Enterprises stock jumped 14.70 percent to settle at Rs 1,564.55 on the BSE. In intra-day trade, it rallied 15.83 percent to Rs 1,580. In two days, the company’s stock climbed 31 percent.
The market valuation of Adani Enterprises has jumped Rs 42,219.95 crore in two days. Adani Transmission advanced 5 percent, Adani Green Energy rose 4.99 percent, Adani Wilmar gained 4.99 percent, NDTV rallied 4.99 percent and Adani Power climbed 4.98 percent.
Shares of Adani Total Gas jumped 4.85 percent, Ambuja Cements (3.32 percent), ACC (2.14 percent), and Adani Ports (1.61 percent).
The broader equity market also recovered after falling in the past eight trading sessions, with the BSE Sensex climbing 448.96 points or 0.76 percent to settle at 59,411.08 points.
The cumulative market valuation of the ten companies stood at Rs 7.56 lakh crore at the end of trading on Wednesday.
Shares of eight of the ten listed firms of the Adani Group closed in the positive territory on Tuesday after taking a beating in recent sessions.
However, Adani Transmission fell 5 percent and Adani Total Gas declined 4.99 percent on Tuesday.
Adani Group stocks crashed on the exchanges after US-based short seller Hindenburg Research last month made a litany of allegations, including fraudulent transactions and share price manipulation, against it.
The Adani group has dismissed the charges as lies, saying it complies with all laws and disclosure requirements.
Hindenburg highlighted the steep debt of Adani and said the stocks of the seven listed group companies were 85 percent overvalued. This prediction came out somewhat true as most of the stocks of the group have crashed 70-80 percent in over a month.
The short-seller Hindenburg claimed that the group was indulging in stock manipulation and fraud by using a wave of shell firms. It said key listed Adani companies have taken on substantial debt, including pledging shares of their “inflated stock for loans”, putting the entire group on precarious financial footing. “5 of 7 key listed companies have reported ‘current ratios’ below 1, indicating near-term liquidity pressure,” the report claimed. This triggered panic among investors and caused a massive selloff in Adani stocks. To win the confidence back of investors, Adani recently prepaid some of the debts due later this year.