According to the rating agency Fitch, the Adani Group’s sponsor-level governance flaws put two of its subsidiaries at risk of spreading the company’s problems. According to Fitch, Adani Transmission Ltd. as well as Adani Ports and Special Economic Zone are at risk of financial inflexibility. In addition, the report states that if it is not addressed appropriately, it may restrict financial flexibility.
At 9:47 a.m., Adani was quoting 965 on the BSE, which was down 5%. In the meantime, business at Adani Ports increased by nearly 2%.
After media reports questioning the Indian conglomerate’s ability to repay debt rekindled a stock selloff, Adani Group is back in firefighting mode.
Adani Ports and Special Economic Zone Ltd. closed on Tuesday at Rs 593.40, down 5.7% from the price investor GQG Partners paid earlier this month to acquire the stake. At one point during the session, it dropped more than 9%. The sharp sell-off of all Adani shares reduced their combined market value by nearly $6.2 billion, the largest decline since early February.
Jugeshinder Robi Singh, CFO of Adani Group, criticized the digital publication on Tuesday for deliberate misrepresentation.
Deliberate deception on the part of @TheKenWeb, @SudzzBTS, and @nimishshp; if I’m not mistaken, they are aware that the respective exchanges will update at the end of the quarter. “The deliberate hoax will become clear to all after we update once the data is released by the exchanges after the end of the quarter,” the company’s CFO tweeted on Monday.