Adani Ports & Special Economic Zone Ltd fell more than 9%, dipping below the price GQG Partners paid to buy a stake earlier this month. The group is seeking to renegotiate the terms of US$4 billion worth of loans, the Economic Times reported, citing people it didn’t identify. Some Adani group dollar bonds also declined.
The report revives concerns about the indebted group’s access to funds, which were brought to the fore following allegations of fraud by US short-seller Hindenburg Research in January. Gautam Adani had sought to reassure investors with roadshows, selling stock in four companies to GQG partners, loan repayments and plans to cut spending.
The group has started talks with lenders to extend the tenor of its US$3 billion bridge loan to a period of five years or beyond from the existing 18 months, according to the Economic Times. It’s also seeking to increase the maturity of another US$1 billion mezzanine loan, the report said.
Adani couldn’t be reached immediately for comments by Bloomberg News. Economic Times said the group denied the report.
Flagship Adani Enterprises Ltd fell about 8% in Mumbai trading. The shares of companies including Adani Green Energy Ltd, Adani Power Ltd, and Adani Wilmar Ltd all declined by a 5% daily limit. Cement assets ACC Ltd lost 3.4% while Ambuja Cements Ltd dropped over 2%.
Twelve of the 15 dollar-denominated bonds from Adani group companies also fell as of 3.33pm in Hong Kong. The Feb 2031 notes issued by Adani International Container Terminal lost 0.7 cents on the dollar to 75.48 cents, and Adani Ports’ Feb 2031 bonds slipped 0.6 cents.
Separately, Indian media publication The Ken raised concerns over the repayment of US$2.15 billion of share-backed loans by Adani Group, saying regulatory filings examined by it showed that banks have not yet released a large portion of its founder’s shares.
“The Ken report is something that increases the risks,” Sameer Kalra, founder of Target Investing, said by phone. “The global banking crisis has resulted in a tightening of liquidity and the cost of it,” he said.
S&P Global Ratings earlier in the month said that downside risks to its rating on Adani group entities include restricted access to funding, slip-ups in corporate governance, a probe uncovering “serious wrongdoing” or previously undisclosed related-party loans, cash leakages, or misreporting.