Shares of Adani Group companies continue to reel under pressure on Thursday with the stocks of Adani Green, Adani Total Gas, Adani Power, and Adani Transmission frozen in their respective five percent lower circuit limits, while those of Adani Enterprises, Adani Ports & SEZ declined 10 percent each.
Since Monday, Adani Ports, Adani Total Gas, Adani Power, and Adani Transmission fell 18 percent. Meanwhile, Adani Enterprises lost 11 percent and Adani Green was down 7.5 percent during this period.
Adani Group stocks fell following media reports that the National Securities Depository Ltd (NSDL) had frozen the accounts of top foreign portfolio investors (FPIs) who own more than Rs 43,500 crore worth of shares in these companies. The NSDL and Adani Group later clarified that it's not true.
The reports said that the FPIs had flouted the Know Your Customer (KYC) norms set by market regulator SEBI. Panicked investors dumped shares, sending the prices crashing down. In some stocks, trading was frozen after there were no buyers.
Adani Group called media reports blatantly erroneous. "We regret to mention that these reports are blatantly erroneous and are done to deliberately mislead the investing community. This is causing irreparable loss of economic value to the investors at large and reputation of the group," it said in a regulatory filing.
In an interview with CNBC-TV18, Jugeshinder Singh, CFO of Adani Group said, “There has been a malicious attempt to push a patently false story.”
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-'.
“We believe APSEZ has adequate liquidity to weather near-term challenges. The company had a readily available cash balance of about Rs 53 billion at FYE21, against operating expenses of Rs 33 billion and interest cost of about Rs21 billion. APSEZ has Rs 14 billion due in FY22 to be repaid or refinanced,” Fitch noted.
Citi, meanwhile, retained a 'buy' rating on Adani Ports as it feels that the negative news is likely to have any impact on the company's business prospects. It added that the firm is well-positioned to grow its already high market share and that the current valuations are attractive.
(Edited by : Akanksha Upadhyay)
First Published: IST