Reply To: What’s Next for Adani Group After Short Seller Hindenburg Report Wipes Out Over $50 Billion in Market Value


Adani Plans $1.1 Billion Loan Repayment After Share Collateral Plummets

The shares of four Adani companies were pledged as a collateral for the $1.1 billion loan—Adani Enterprises, Adani Green Energy, Adani Ports & Special Economic Zone Ltd. and Adani Transmission.

The Adani Group said Monday that its so-called promoters—a term used to describe controlling shareholders—have posted amounts to pay off the loan ahead of its maturity in September 2024. The loan was backed by shares in several Adani companies, all of which have fallen dramatically since U.S. short seller Hindenburg Research published a scathing report on the Adani Group on Jan. 24.

Since the rout began last month, India’s stock-market operators have gradually reduced the maximum amount that Adani stock prices can fall. The maximum move of Adani Green Energy Ltd.’s shares, which have more than halved in value since the Hindenburg report was published, was reduced to 5% from 10% before trading commenced on Monday. The limit for Adani Total Gas Ltd. was cut to the same level on Friday. Both stocks fell the maximum amount on Monday, alongside other Adani companies.

The seven listed companies bearing the Adani name have now lost the equivalent of $111 billion in value following the release of the Hindenburg report, according to FactSet data.

After the market closed on Monday, Adani Transmission Ltd. released its results for October through December, the third quarter of India’s financial year. The company said both revenue and profit rose by double digits. Several other Adani companies are due to release their quarterly results this week.