Ratings agency Fitch has said that two Adani Group subsidiaries are exposed to heightened contagion risks as a result of governance weakness at the conglomerate’s sponsor level. Adani Transmission Limited and Adani Ports and Special Economic Zone are prone to risks which could affect financial flexibility, said Fitch. The report further added that this could affect financial flexibility, if not addressed properly.
At 9:47 am, Adani Transmission was quoting at ₹965 on the BSE, lower by 5 percent. Meanwhile, Adani Ports was trading higher by nearly 2 percent at ₹609.
The Adani Group is back in fire-fighting mode after media reports called into question the Indian conglomerate’s ability to repay debt, reviving a selloff in its stock.
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Adani Ports & Special Economic Zone Ltd. fell 5.7% to close at 593.40 rupees on Tuesday — lower than the price investor GQG Partners paid to buy a stake earlier this month. It plummeted more than 9% at one point in the session. The sharp selloff in all Adani stocks erased about $6.2 billion from their combined market value, the biggest decline since early February.
On Tuesday, Adani Group CFO, Jugeshinder Robbie Singh, criticised the digital publication for its deliberate misrepresentation.
“Deliberate misrepresentation ( and if i speculate out right lies) of @TheKenWeb ( @SudzzBTS an @nimishshp) they know that relevant exchanges will update end of quarter. The deliberate subterfuge will be clear to all once exchanges update the data post end of quarter,”tweeted the company CFO on Monday.
Source: Livemint
