Adani co stocks rebound, add ₹20,205 cr in mcap

Most Adani Group stocks rebounded on Wednesday from a sharp fall the previous day after the conglomerate clarified that it has completed full prepayment of margin-linked share- backed financing of $2.15 billion, and all corresponding shares pledged for such loans have been released.

Adani Enterprises, the group's flagship company, jumped 8.72% to close at ₹1,740, while Adani Ports soared 7.29% to close at ₹636. Adani Wilmar, Adani Power, and NDTV shares gained 5% - the highest tradable limit for the day. Adani Transmission, Adani Total Gas, and Adani Green shares declined 1% and 4%, respectively.

The group's market capitalisation surged by ₹20,205 crore on Wednesday to ₹9.09 lakh crore after falling by ₹49,400 crore the previous day. In the past week, these stocks have weakened again, possibly due to negative news flow. Adani's clarification late last night to stock exchange was in response to a report by The Ken earlier in the day which raised questions on whether the conglomerate's promoters had repaid its loans against the shares they had pledged.

Since March 2, when US-based GQG Partners put money into Adani Enterprises, Adani Ports, Adani Total Gas and Adani Green Energy, most of the conglomerate's stocks had rebounded, cutting losses triggered by the Hindenburg report which was released on January 25. But in the past week, these stocks have weakened again, possibly due to negative news flow.

The Adani group has lost a total of over ₹10.12 lakh crore in market cap since the release of the Hindenburg report alleging the group has engaged in 'brazen stock manipulation' and 'accounting fraud scheme.' The group has strongly denied the allegation.

Meanwhile, rating agency Fitch on Tuesday said that Adani Group subsidiaries - Adani Transmission and Adani Ports and Special Economic Zone - are exposed to heightened contagion risks due to governance weakness at the conglomerate's sponsor level while affirming BBB- ratings to group entities. Fitch said these companies are prone to risks which could affect financial flexibility.