Adani Group stocks rally, close off day’s highs

Mumbai: Adani Group stocks rallied in early trade on Tuesday after the promoters said they had repaid ₹9,250 crore ($1.1 billion) of debt backed by shares in three companies. However, the rally moderated in the second half of the trading session with the stocks giving up a chunk of the day’s gains as several investors used the rebound to slash their bets on Adani Group companies. shares gained as much as 25% intraday before closing 14.63% higher at ₹1,802.50. gained 10% intraday and closed 1.33% higher at ₹553.30. Similarly, gained 7% intraday and closed 1.12% higher at ₹383.70. However, , and failed to sustain the positive momentum and fell back to hit the 5% lower circuit barrier. “There were many reasons for the pullback in Adani stocks, like promoters pumping in over $1 billion to release pledged shares, sharp correction in stock prices over last two weeks, and shifting some stocks under additional surveillance, which require 100% margins to trades,” said Sanjiv Bhasin, director, . “However, it’s difficult to say whether the worst is over for Adani Group stocks.”

Adani Enterprises Down 47% Since Jan 24
According to Sudip Bandyopadhyay, group chairman of , long-term investors could look at buying Adani Ports and . “If you look at the valuations, these were relatively reasonably valued even pre-correction, and now post-correction, they are definitely attractive from a long-term investor’s point of view, so these can be acquired,” he said.

Stocks such as Adani Total Gas, Adani Green Energy and

have declined between 55% and 62% since US-based Hindenburg Research released a report January 24 accusing the conglomerate of engaging in “brazen stock manipulation” and an “accounting fraud scheme”. The Adani Group has rejected the report and denied any wrongdoing.

Adani Enterprises has fallen 47% since January 24 and 57% from its 52-week high. The company unexpectedly called off its Rs 20,000 crore follow-on public offer (FPO) last Wednesday, a day after it closed successfully. The decision followed a 28.45% plunge in its shares earlier in Wednesday’s trading, resulting in the price trading at 31.6% below the lower end of the FPO price band of ₹3,112-3,276 apiece.

Except for Ambuja Cement, , and Adani Ports, seven other group stocks are down 55-72% from their respective yearly highs, with Adani Green Energy and Adani Transmission having declined more than 70%.

Global rating agency Moody’s on Tuesday said risks for banks could increase if Adani becomes more reliant on bank loans. “The group’s access to funding from international markets can be curtailed because of heightened risk perception,” it said. “In that case, domestic banks may become the main source of funding for the group, resulting in increases in banks’ exposures to Adani and greater risks for them.”

PTI reported Tuesday that seven Adani Group stocks had triggered regulatory surveillance actions during various periods since 2019 on account of volatility and high promoter pledges.