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BLOOMBERG
Adani Group stocks slumped on Tuesday as local media reports sparked renewed concerns over the ports-to-power conglomerate’s ability to repay its debt.
Adani Ports & Special Economic Zone Ltd fell 5.7% to close at 593.40 rupees — lower than the price GQG Partners paid to buy a stake earlier this month — after plummeting more than 9% earlier in the session. The sharp selloff in all Adani stocks erased about $6.2 billion from their combined market value, the biggest decline since early February.
The group is seeking to renegotiate the terms of $4 billion worth of loans, the Economic Times reported, citing people it didn’t identify. The report revives concerns about the indebted group’s access to funds, which were brought to the fore following allegations of fraud by US short seller Hindenburg Research in January. Billionaire Gautam Adani had sought to reassure investors with roadshows, selling stock in four companies to GQG partners, loan repayments and plans to cut spending.
The group has started talks with lenders to extend the tenor of its $3 billion bridge loan to a period of five years or beyond from the existing 18 months, according to the Economic Times. It’s also seeking to increase the maturity of another $1 billion mezzanine loan, the report said.
Adani couldn’t be reached immediately for comments by Bloomberg News. Economic Times said the group denied the report.
Flagship Adani Enterprises Ltd was worst performer among the 10 stocks related to the group as it fell about 7% to close at its lowest since early March. Some other group companies, including Adani Green Energy Ltd, Adani Power Ltd, and Adani Wilmar Ltd all declined by a 5% daily limit. Cement unit ACC Ltd lost 4.2%, while Ambuja Cements Ltd dropped 3%.
Twelve of the 15 dollar-denominated bonds from Adani group companies also fell in Hong Kong. The February 2031 notes issued by Adani International Container Terminal lost 0.7 cents on the dollar to 75.48 cents, and Adani Ports’ February 2031 bonds slipped 0.6 cents.