Shares Of Adani Companies Slide, As Reports Of Increasing Debt Emerge

Shares Of Adani Companies Slide, As Reports Of Increasing Debt Emerge

Share price of Adani Enterprises slumped by a significant 3.33 per cent, taking the value of each share to Rs 3,200.00 (1300 IST).

Juviraj AnchilUpdated: Wednesday, March 06, 2024, 01:32 PM IST
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Gautam Adani | File

In what can be seen as a ripple effect of the report published by Business Line, the shares of Adani entities, including the flagship Adani Enterprises has seen a slump. As of today (Wednesday), the shares of major entities listed on the market are trading in red. Share price of Adani Enterprises slumped by a significant 3.33 per cent, taking the value of each share to Rs 3,200.00 (1300 IST).

Similarly, the shares Adani's ports also appeared to have slumped by 2.07 per cent. Adani power is trading at a Rs 565.10 per share, having declined by 1.52 per cent.

Adani's ambitious Green energy entity is also slumped by 2.20 per cent. In addition, Adani Wilmar also saw a drop in its fortunes, as the shares are trading at Rs 359.35, having declined by 1.89 per cent. In addition, according to Forbes Gautam Adani's personal fortune has also seen a drop, as it declined 1.3 per cent or USD 1.5 billion.

Report on burgeoning debt

This comes at the back of report published by the Hindu's Business Line. In the report it is claimed that the net debt of the Ahmedabad-based conglomerate has increased in FY24. In fact, the net debt is expected to expand to USD 26 billion by the end of this fiscal year. This is tangibly higher than last year's (financial) numbers, that were released by the company. In FY23, the group's reported net debt stood at USD 21 billion.

According to the Business Line report, approximately 34 per cent of the total debt comprises global bond issuances, while 36 per cent comes from vanilla debt. The report further pointed out that the remainder originates from domestic debt and funds raised from private equity firms for group companies.

Recovery from Hindenburg

The company previously managed to wither the storms of the Hindenburg report, that accused the company of committing fraud and other irregularities, in alleged contravention of Indian laws. The investigation is ongoing, and is currently being carried out SEBI. The Hindenburg storm also wiped out a lot of Gautam Adani's personal fortunes, as in 2023 his net worth was reduced to below USD 50 billion.

As of today, according to Forbes, his cumulative net worth stands at around USD 83 billion, seemingly recovered from the report jolt, that took investor confidence in the company to significant lows.

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