Why the sell-off in Adani’s shares again?

by Ana Lopez

Adani Enterprises tumbled seven percent, circuit lower in four scrips

Nilesh Vaghela
MUMBAI: As the stock market is still recovering from the Hindenburg and US Silicon Valley Bank shocks, Adani Group stocks once again saw selling pressure and erosion. All 10 stocks of the Adani Group tumbled into the negative zone on Tuesday, with four of them, Adani Power, Adani Transmission, Adani Green and Adani Total Gas, recording a five per cent lower circuit.
Shares of flagship company Adani Enterprises were the worst performers, falling 7.6 percent to Rs. reached the level of 1,601.55. According to market instruments, a report by The Can raising questions about the Adani Group’s debt repayments totaling $2.15 billion added to the selling pressure in the group’s shares in the media.
According to the report, the Adani group claimed to have repaid ‘in full’ the $2.15 billion it received against the shares, but regulatory filings show banks have not released a large portion of the pledged shares. This means that the debt has not been paid in full, the interpretation expressed in the report.
According to the market discussion, after Adani’s announcement of prepayment, the bank has released only the pledged shares of Adani Ports and SEZ, the pledged shares of Adani Green and Adani Transmission have not been released by the banks even after a month of loan repayment. This is highly unusual, as the pledged shares are usually released soon after the debt is settled, the report said.
Meanwhile, another reportedly wants to renegotiate the terms of the outstanding $4 billion loan taken in August last year for the acquisition of ACC and Ambuja Cement from Switzerland-based Holcim Group.

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