BackAdani stocks rebound as group rebuts debt repayment reports; all 10 counters in green
The Adani Group has refuted a report about its ability to repay debt, easing renewed concerns about a crisis of confidence
PremiumAdani Group stocks rebounded in Wednesday's trade after the ports-to-power conglomerate rebutted reports that it has not completed repayment of loans backed by shares worth $2.15 billion.
"Adani has completed full prepayment of margin linked share backed financing aggregating to USD 2.15 billion and all corresponding shares pledged for those facilities have been released," the group stated in a regulatory filing.
The conglomerate has 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."
The group's flagship entity, Adani Enterprises advanced as much as 6.69 per cent to ₹1,708 per share, while Adani Ports & Special Economic Zone added 4.71 per cent to ₹621.35 apiece and were among the top Nifty 50 gainers.
Other group companies also gained, paring losses on Tuesday spurred by reports from the Economic Times and The Ken.
Among other stocks, Adani Power climbed 4.98 per cent, Adani Wilmar 4.22 per cent and Adani Green Energy 4.15 per cent on the BSE.
The stock of NDTV surged 3.73 per cent, Adani Transmission went up by 2 per cent, Adani Total Gas 2 per cent, Ambuja Cements 1.94 per cent and ACC 1.92 per cent.
Adani Group CFO Jugeshinder Robbie Singh on Tuesday said stock exchanges update data on promoter share pledges at the end of the quarter, as he tried to clarify on present data not matching with the conglomerate's statement of repaying all the $2.15 billion of share-backed debt.
Singh termed reports suggesting that the company's March 7 and March 12 announcements did not match with the information available on stock exchanges "deliberate misrepresentation".
"...they know that relevant exchanges will update end of quarter," he said in a Twitter post. "The deliberate subterfuge will be clear to all once exchanges update the data post end of quarter."
On 12 March, the conglomerate stated that it had repaid $2.15 billion of loans that were taken by pledging promoter shares.
“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 Pvt.
“Investors are still shaky about Adani stocks and we can see this lack of confidence as shares are reacting to every media report," Churiwala added.
In a 24 January report, US-based short-seller Hindenburg Research flagged "substantial" debt levels at the group while alleging accounting fraud and the use of offshore shell companies to inflate stock prices.
However, the Adani Group has denied all Hindenburg allegations, calling them "malicious", "baseless" and a "calculated attack on India".
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