Shares of Adani Group companies continue to reel under pressure on Wednesday, falling up to five percent in early trade. The stocks of Adani Total Gas, Adani Power, and Adani Transmission hit five percent – their lower circuit limits, while those of Adani Enterprises, Adani Ports & SEZ, and Adani Green Energy declined three to four percent each.
The share prices of these companies took a massive beating over the last couple of sessions following media reports that the National Securities Depository Ltd (NSDL) had frozen accounts of three foreign portfolio investors (FPIs) own more than Rs 43,500 crore worth of shares in Adani Group companies.
However, the Adani group denied that NSDL had frozen accounts of three offshore funds while calling the media reports “blatantly erroneous”.
Later, NSDL also informed the port-to-energy conglomerate that the status of the Demat accounts mentioned was held in ‘active' status in its system.
Meanwhile, Fitch Ratings has placed a ‘negative’ outlook on Gautam Adani-led Adani Ports and Special Economic Zone Limited's (APSEZ) affirming long-term foreign-currency Issuer Default Rating (IDR) at 'BBB-'.
APSEZ’s underlying credit profile is assessed at ‘bbb’ while its rating is capped by India’s Country Ceiling of 'BBB-', Fitch said.
APSEZ’s underlying credit profile reflects its status as the largest commercial port operator in India, with best-in-class operational efficiency. Historically, the issuer has experienced throughput resilience in economic cycles, including the current Covid-19-related downturn, it said.
“We believe APSEZ has adequate liquidity to weather near-term challenges,” Fitch said.
Fitch’s rating case projects adjusted net debt/EBITDAR will average 3.6x in FY22-FY26. The ratio can also drop below 3.0x if management can maintain consolidated EBITDA margins of 65%.