Most Adani Group stocks slumped on February 1 as concerns over stock volatility continued despite its flagship Adani Enterprises successfully closing Rs 20,000-crore follow-on public offering (FPO) yesterday.
The largest companies in the conglomerate are now seeing a $84 billion decline.
In response to news that Credit Suisse no longer accepts Adani firms' bonds as collateral for margin loans, Adani Enterprises experienced a nearly 26 percent decline, closing at Rs 2,180.20 per share on the BSE.
The listed companies
Adani Ports, a different group stock, too experienced a 20% decline in price and closed at $492.15 per share. Ambuja Cements' 16.56 percent drop to close at Rs 334.60 and ACC's 5.96 percent drop to close at Rs 1,852 contributed to the group's additional decline.
Adani Green Energy dropped 5.78 percent to Rs. 1,153.35, Adani Transmission decreased by 2.46 percent to Rs. 1,730.25, and Adani Total Gas decreased by 10% to Rs. 1,901.65.
Adani Power also reached its 5% lower limit of Rs 212.75.
According to the Bloomberg's report citing sources, the Swiss lender’s private banking arm has assigned a zero lending value for notes sold by Adani Ports and Special Economic Zone, Adani Green Energy and Adani Electricity Mumbai Ltd.
The Adani FPO
Though the FPO was fully subscribed, retail investors seem to have taken a backseat as the stock price has slid below the FPO price band.
Later in the day, Adani Enterprises is anticipated to reveal the final pricing for its offering.
Group's stock took a beating last week after American short seller Hindenburg Research accused it of utilising tax havens and raised financial issues in a report. The Adani group refuted all allegations in a 413-page response.
According to a Bloomberg story, the Adani Group has maintained its collateral coverage on a $1 billion loan by putting up millions of dollars' worth of shares despite the stock market crash.
According to a source cited by Bloomberg, Adani added around $300 million worth of shares on January 27 in exchange for a loan provided by a number of banks, including Barclays Plc.
After-effect of collapse
In light of the share price collapse, MSCI has released a consultation paper to determine how to handle the Adani equities that are a member of its Global Standard Index.
“Aware of the reports recently published regarding the Adani Group and associated securities. Will announce to all clients simultaneously if there are any changes to MSCI indexes,” it said.
