Have you repaid debt worth $2.15 billion? BSE asks Adani

A January 24 report by US-based short-seller Hindenburg Research, accused Gautam Adani’s empire of stock manipulation

BSE Ltd on Tuesday demanded clarification from Adani Enterprises Ltd following a bear run on Adani shares being linked to a media report raising concerns about the ports-to-power conglomerate’s claim about prepayment of share-backed loans worth $2.15 billion earlier this month.

Bengaluru-headquartered business news publication The Ken cited regulatory filings to argue against the Adani Group’s public announcement of having prepaid the loans - it pointed out that a part of the promoter shares held as collateral haven't been released by banks. The report further elaborated that the group has only reduced its loan amount via a partial repayment, to deter any action against it by the lenders.

Also Read | Adani lost $28 billion in 2022-23; Rekha Jhunjhunwala among 16 new billionaires: Hurun Rich List

Adani Group Chief Financial Officer Jugeshinder Singh however, rejected the media outlet’s report on Twitter late evening on Tuesday claiming that “all margin loans of the promoters have been paid in full.” Furthermore, he urged that “the deliberate subterfuge” will be clear once the exchanges update relevant data at the end of the quarter.

This Ken report resulted in a selloff on Indian bourses with the flagship Adani Enterprises Ltd losing about 7 per cent in value and six of the ten listed companies falling around 5 per cent. The remaining three companies too ended in the negative territory.

“The stock prices are sensitive enough and the subject critical enough for even a slightly negative narrative to spook investors and trigger panic and heighten volatility almost immediately,” reasoned Nirav Karkera, who heads research at wealth-tech platform Fisdom.

A January 24 report by US-based short-seller Hindenburg Research, which accused Gautam Adani’s empire of stock manipulation and accounting fraud, triggered a stock rout wiping over $110 billion in combined market value from the group’s 10 listed firms. The billionaire has since been attempting to regain investor confidence with roadshows, loan repayments and plans to cut spending.

BSE Ltd did not respond to DH’s query seeking a comment.