Sales of Adani Group shares continued amid credit warning
2023.02.06 03:03
Sales of Adani Group shares continued amid credit warning
By Kristina Sobol
Budrigannews.com – As a U.S. short-seller’s report critical of the group’s finances now led to credit warnings, the sell-off in India’s Adani Group’s seven listed companies, where more than $110 billion in market value has already evaporated, continued on Monday.
Moody’s, a rating agency (NYSE:) Hindenburg Research’s Jan. 24 report, which questioned the conglomerate’s debt levels and use of tax havens, resulted in S&P cutting its outlook on two group companies and warning that the group may struggle to raise capital.
On Monday, shares of Adani Enterprises Ltd. fell 9.6%, bringing the group’s flagship company’s losses since the report to nearly $28 billion.
The shares of Adani Transmission Ltd. went down 10%, while the shares of Adani Green Energy Ltd., Adani Total Gas Ltd., Adani Power, and Adani Wilmar went down approximately 5%.
With a gain of 1.2 percent, Adani Ports and Special Economic Zone was the only stock in the green.
Despite recent significant stock declines in Adani Group companies, India’s market regulator took action on Saturday to calm investor concerns by stating that the country’s financial markets remain stable and continue to function in a transparent and efficient manner.
