Gautam Adani got a shock again: Adani Group’s market value fell below $ 100 billion
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New Delhi : Industrialist Gautam Adani’s losses are not stopping after the report of American short selling company Hindenburg Research came out. According to media reports, the combined equity market value of 10 Adani Group companies fell below $100 billion on Tuesday. Adani Group is constantly struggling to reassure investors after the Hindenburg report. Adani Group companies ranging from Adani Ports to Adani Power have lost over $136 billion in market capitalization since January 24. The Hindenburg Research report alleged stock rigging and accounting fraud. However, Adani Group has also denied this allegation.
Selling continues in stocks
Billionaire industrialist Gautam Adani and his companies have hired legal and communications teams, cut expenses and pared debt, as they seek to calm traders worried about the group’s access to financing. Now that the Adani Group has achieved some success in bailing out dollar bonds, the continued sell-off by group companies is a sign that it needs to further instill investor confidence.
Capital expenditure and debt major concerns
Sameer Kalra, founder, Target Investing in Mumbai, said capital expenditure and debt are the main concerns. These may further put weight on the market valuation. According to a Bloomberg report, the Adani Group tapped international bond buyers for over $8 billion in recent years. Along with this, it has turned to global banks for foreign currency loans. Rating agencies have also revised outlook for some companies including Adani Green Energy Ltd and Adani Ports and Special Economic Zone Ltd.
Shares of Adani Group companies declined
The Adani Group and its companies are prioritizing financial health in the aggressive credit-fuelled expansion spree of recent years. The Group’s focus has shifted to cash conservation, loan repayment and recovery of pledged shares. Adani Group is constantly trying to make up for the loss caused after the publication of the Hindenburg report. Adani Group’s mixed business was happening in the domestic stock market on Tuesday morning. Among group companies, shares of Adani Green, Adani Transmission Ltd and Adani Total Gas Ltd were trading below the 5 per cent limit, while Adani Power Ltd saw a marginal rise and Adani Ports traded higher by about 2 per cent.
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