Adani Group stocks rout continues, ₹37,856 crore market cap wiped out on Friday

• The rout in Adani Group stocks continued on Friday, with a ₹37,856 crore decline in market capitalization during the day.
  
• Shares of the flagship Adani Enterprises plummeted as much as 35% during the day before partially recovering.
  
• A Business Insider India analysis has revealed that the Adani Group’s gains of 2022 have been completely wiped out in the last nine days.
  

The rout in Adani Group stocks continued on Friday, with a ₹37,856 crore decline in market capitalization in the first half of trading during the day.

Shares of the flagship Adani Enterprises plummeted as much as 35% during the day before closing 1.38% in the green. While all the nine stocks were deep in the red in the first half of the day, they staged a recovery and four out of the nine stocks ended in the green.


Source: NSE, current market price as at 12:45 p.m., February 3, 2023 / change as compared to February 2

According to Business Insider India’s analysis, the Adani Group’s gains of 2022 have been completely wiped out in the last nine days. Gautam Adani’s wealth in this period has fallen by $57.7 billion, taking him from the third to 21st place on Bloomberg Billionaires Index.

In another development, Adani Group is said to have made scheduled coupon payments on outstanding US dollar-denominated bonds on Thursday, according to Reuters, which quoted a source with direct knowledge of the conglomerate's strategy.

The payments were made as Adani Group, led by Indian billionaire Gautam Adani, as the group battles with a rout in its stocks in India and its US bonds after last week's critical report by the US short-selling firm.

The group entities made scheduled coupon payments on outstanding US dollar-denominated bonds on Thursday, according to Reuters' source with direct knowledge of the conglomerate's strategy.

Adani Ports and Special Economic Zone paid coupons, the two sources of Reuters, speaking on condition of anonymity, said. The source with knowledge of the firm's strategy said Adani Transmission also processed bond payments on Thursday.

Adani Group plans to issue a credit report by today which will address concerns raised by the Hindenburg report about its liquidity, according to Reuters' source. According to Reuters, the Adani Group did not respond to a request for comment.

Calculations showed that interest payments of a total of around $24 million were due on February 2 on three bonds issued by Adani Ports and Special Economic Zone due to mature in 2031, 2032 and 2041.

The conglomerate's dollar bonds slipped further into losses on Thursday, a day after its flagship Adani Enterprises called off a $2.5-billion share sale in a shock move, the report said.

Adani Green's bonds maturing in September 2024 led the losses, falling 11.69 cents to 60.56 cents, their lowest since issuance, according to Reuters.

The US dollar-denominated bonds of Adani Ports and Special Economic Zone, Adani Transmission and Adani Electricity Mumbai were also trading lower, the report added.

(With inputs from ANI)

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