BackAdani group company's bonds fall to distressed levels after FPO withdrawal
Adani Ports & Special Economic Zone or APSEZ's 3.375% bond due in July 2024 fell the most in global secondary markets on Wednesday
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After withdrawal of Adani Enterprises FPO (Follow-on Public Offer) on Wednesday, Adani group company's bonds fell down to distressed levels. Bonds issued by Adani Green Energy and Adani Ports & Special Economic Zone (APSEZ) received maximum beating in the global markets.
As per the Trade data, Adani Ports & Special Economic Zone or APSEZ's 3.375% bond due in July 2024 fell the most in global secondary markets as it logged decline to the tune of 20 cents on the dollar to 69.75 cents in investment grade — clocking biggest loss on Wednesday session. Likewise, four more bonds issues by Adani Ports & Special Economic Zone plunged to distressed levels on Wednesday as they fell to 69 cents or lower.
Adani Green Energy's 4.375% bond due in September 2024 dipped over 12 cents on the dollar to 66.75 cents in global secondary market trading on Wednesday. Just one bond issued by Adani Green Energy didn't fell to distressed levels but it also got hit by 9 cents on the dollar.
Some bonds of Adani Ports & Special Economic zone and Adani Green Energy currently yield more than 30 per cent in global secondary markets, which is much higher than the average investment grade yield of 4.96 per cent and junk bond yield of 8.14 per cent.
In a dramatic U-turn on Wednesday evening, Adani Enterprises Ltd announced to withdraw its FPO worth ₹20,000 crore. The company decided to call off Adani Enterprises FPO despite getting fully subscribed in three days of bidding from 27th January to 31st January 2023.
Announcing the withdrawal of Adani Enterprises FPO, Gautam Adani, Chairman at Adani Enterprises Ltd said, “The Board takes this opportunity to thank all the investors for your support and commitment to our FPO. The subscription for the FPO closed successfully yesterday. Despite the volatility in the stock over the last week, your faith and belief in the company, its business and its management has been extremely reassuring and humbling."
On Wednesday session on Dalal Street, Adani Enterprises share price crashed 26 per cent and finished at ₹2,179.75 apiece on NSE, which is ₹932.25 per equity share lower from the lower price band of Adani Enterprises FPO price.
In the aftermath of Hindenburg Research report raising concern over Adani group companies debt positioning, Adani Enterprises shares nosedived from ₹3.442 to ₹2,179.75 apiece levels, logging more than 36 per cent loss in last five straight sessions.
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