Adani stocks lose up to 8%; all 10 counters in red. Here's why

NEW DELHI: All 10 Adani Group stocks were trading lower on Tuesday with four of them, Adani Power, Adani Transmission, Adani Green and Adani Total Gas, locked in the 5% lower circuit limits. Shares of the conglomerate's flagship entity Adani Enterprises were the worst performer as they lost up to 7.8% to hit day's low at Rs 1,588.80.

The group's cash cow Adani Ports was trading 5% on the stock exchanges.

The selloff in Adani stocks resumed after a report published by The Ken raised questions on whether the Ahmedabad-based conglomerate has actually repaid debt totaling $2.15 billion.

"Despite the Adani Group's claim of “complete” repayment of $2.15 billion in share-backed debt, regulatory filings show that banks have not released a significant portion of the promoters' shares held as collateral, indicating that the debt has not been fully paid off," the report said.

It claimed that the group has only reduced the loan amount through partial repayment to avoid pledging more shares and any action against it by the lenders.

After Adani’s prepayment announcement, banks have only released the pledged shares of Adani Ports & SEZ, according to the report.

"The pledged shares of Adani Green and Adani Transmission have not been released by banks even a month after the loan repayment. This is highly unusual as pledged shares are usually released immediately after the borrower settles their debts," it said.

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In the meantime, according to another report in ET today, the Adani Group is seeking to renegotiate the terms of outstanding loans worth $4 billion taken in August last year for the acquisition of its cement assets - ACC and Ambuja Cements - from Switzerland-based Holcim group.

Following the release of a damaging report by Hindenburg Research in late January, Adani stocks went into a tailspin and ended up losing around $100 billion in market capitalisation in the next few weeks. However, after the embattled billionaire conducted roadshows to convince investors, prepaid debts and sold stake to US-based GQG Partners in a Rs 15,000 crore deal, the sell-off was contained.