Contagion continues! Most Adani group stocks hit lower circuits

NEW DELHI: After global bankers Citigroup and Credit Suisse stopped accepting securities of Adani companies as collateral for margin loans, most Adani Group stocks were today locked in their respective lower circuit limits.

The shares of the conglomerate's flagship Adani Enterprises, whose Rs 20,000 crore-FPO was withdrawn late last night, was the worst hit as it 26.5% lower at Rs 1,564.7 on BSE before hitting a 52-week low.


Three stocks from billionaire Gautam Adani's belt hit their respective 10% lower circuit limits - Adani Transmission tumbled to Rs 1,557.25, Adani Transmission Rs 1,557.25 and Adani Green Energy Rs 1,038.05.

Shares of Adani Ports, considered the group's cash cow, ended 6.1% lower at Rs 462 before hitting a fresh 52-week low at Rs 423.

On the other hand, NDTV, Adani Power and Adani Wilmar were locked in 5% lower circuit limits.

Adani's two new acquisitions - ACC ended marginally high at Rs 1,855 while Ambuja Cements ended 5.3% higher at Rs 352.45 after the conglomerate clarified that the promoters have not pledged their holdings.

Amid the bloodbath, Adani stocks have fallen up to 62% from their all-time high levels.

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The trouble for Adani stocks, which began after American short-seller and whistle-blower Hindenburg Research raised multiple allegations last week, increased yesterday after Credit Suisse stopped accepting Adani bonds as collateral.

As the stock rout deepened, Adani was forced to withdraw the FPO last night in a surprise announcement. This morning, it was reported that Citi's wealth unit has also decided to cut the loan-to-value ratio for credit against Adani securities to zero.

"For me, the interest of my investors is paramount and everything is secondary. Hence to insulate the investors from potential losses we have withdrawn the FPO," Adani said in a video message to shareholders this morning.

Stating that he will review the capital market strategy once the capital market stabilises, Adani said the decision will not have any impact on existing operations and future plans.

"The fundamentals of our company are strong. Our balance sheet is healthy and assets, robust. Our EBIDTA levels and cash flows have been very strong and we have an impeccable track record of fulfilling our debt obligations. We will continue to focus on long-term value creation and growth will be managed by internal accruals," Adani said while trying to reassure investors.

In the last six trading sessions, the market capitalisation of all 10 listed Adani companies is down by more than 40% or Rs 8.3 lakh crore. Shares of Adani Enterprises itself are down nearly 50% from their 52-week high after a gravity-defying rally in the last few years.

(With data inputs from Ritesh Presswala)