Adani Enterprises shares rocket 25%

Wednesday, 8 February 2023 00:00 - - {{hitsCtrl.values.hits}}

MUMBAI, AFP: Shares in the flagship firm of troubled Indian conglomerate Adani rocketed as much as 25% Tuesday, making up some of the huge slump suffered since last month.

The group owned by tycoon Gautam Adani lost around $ 120 billion in value after claims of accounting fraud were levelled by short-seller US investment group Hindenburg Research on 24 January.

The rise on Tuesday of Adani Enterprises and several other listed units of India’s biggest conglomerate helped trim the total loss to around $ 112 billion, Bloomberg reported.

The slide has raised concerns about the group’s ability to raise fresh financing to pay down its debts. It cancelled a share sale, and reportedly also a bond issue, last week.

But Adani said Monday it was repaying early loans worth $ 1.1 billion, in a move meant to reassure investors.

Adani Enterprises, the group’s flagship firm, soared as much as 25% on Tuesday, with trading suspended three times on the way up.

They pared back some of the gains after transactions resumed, but remained 17% up in early afternoon ─ although still down by more than half since the start of the year.

Other group companies were mixed, with Adani Transmission and Adani Wilmar both limit-up five percent, and Adani Total Gas limit-down to the same extent.