Shares of most Adani group companies were trading higher on Tuesday after Gautam Adani-led conglomerate announced reducing the overall promoter leverage to restore investor confidence amid the recent selloff triggered by Hindenburg Research report. Promoters of Adani group companies on Monday said they plan to prepay $1.114 billion ahead of the maturity in September 2024 to release some pledged shares in Adani Ports & Special Economic Zone, Adani Green Energy, and Adani Transmission.
All Adani group stocks were trading in the green on Tuesday, barring Adani Power and Adani Total Gas, in an otherwise volatile broader market. Adani Transmission hit a 5% upper circuit in opening trade after the company reported strong growth in its December quarter earnings on the back of a one-time income gain and higher revenues. Among others, shares of Adani Enterprises and Adani Wilmar were locked in the upper circuit of 10% and 5%, respectively. Adani Port & SEZ shares jumped 9.3%, while ACC and Ambuja Cements also rose up to 3%.
Bucking the trend, Adani Power fell 4%, while Adani Total Gas dropped 5% during the trade so far. Adani Green Energy also slipped into negative terrain, paring early gains.
Meanwhile, shares of Ambuja Cements, Adani Ports and Special Economic Zone, and Adani Green Energy will be in focus ahead of its quarterly earnings scheduled to be declared today. Adani group shares seem to have got a boost after promoters’ commitment to reduce the overall promoter leverage backed by listed company shares. “In light of recent market volatility and in continuation of the promoters’ commitment to reduce the overall promoter leverage backed by Adani Listed Company shares, we are pleased to inform that promoters have posted the amounts to prepay $1,114 million ahead of its maturity of Sep 2024,” the Adani Group said in a statement on Monday.
AsAs part of the pre-payment plan, 168.27 million shares of Adani Ports & Special Economic Zone, representing 12% of the promoters’ holding, will be released. In the case of Adani Green Energy, around 27.56 million shares, representing 3% of promoters’ holding, will be released, while about 11.77 million shares of Adani Transmission, representing 1.4% of promoters’ holding, will be released, the company said. Last week, Adani Enterprises, the flagship company of Adani Group, also announced the withdrawal of its ₹20,000-crore follow-on public offer (FPO) to safeguard the interest of its investing community amid sharp volatility in the company’s shares. Shares of Adani group companies have witnessed sharp sell-off in the last two weeks after the U.S.-based investment firm Hindenburg Research released a report on January 25, alleging that key listed Adani firms have taken on substantial debt, including pledging shares of their inflated stock for loans. The conglomerate, however, refuted all allegations in a detailed 413-page response to Hindenburg’s report.
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