Image Source: The Indian Express

To regain bond holders’ trust, Adani Group undertakes a road show

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After the harsh Hindenburg report prompted a month-long selloff of its stock on the stock market, the Adani group on Monday started a three-day road show with its bondholders in an effort to regain their trust. Although the company made no formal comments, a Bloomberg report said that the discussions were held at Singapore’s Capitol Kempinski hotel by about 12 international banks. The roadshow has been organised by well-known banks like BNP Paribas, DBS Bank, Standard Chartered Bank, Deutsche Bank, ING, MUFG, and Mizhuo.

Jugeshinder Singh, group chief financial officer, and Anupam Misra, head of corporate finance, were on hand to represent the Adani group. Meetings at the Barclays Plc office in Hong Kong will take place on Tuesday and Wednesday after the Singapore meeting. The group has approached international bondholders several times since the report’s publication. It has released a credit note stating that there are no immediate cash needs or significant re-financing risks. This fiscal year, the group’s estimated cash flow from its diverse assets across the listed firms will be Rs 44,078 crore, which is more than its debt of Rs 23,590 crore.

Nine counters ended Monday with a loss, indicating that the outreach had no positive effect on the group equities. The company’s flagship, Adani Enterprises, fell 9.17%, or Rs 120.55, to close at Rs 1,194.20 on the BSE. The stock crashed 11.99% to Rs 1,157 during intraday trading. Adani Total Gas, Adani Wilmar, and the Adani Transmission scrip all fell lower by 5%, 5%, and 4.99%, respectively, among the other shares.

Except for Adani Ports, all of the other group stocks reported losses on Monday. Adani Green Energy, NDTV, and Adani Power all experienced declines of 4.99%, 4.98%, and 4.97%, respectively. Ambuja Cements and ACC, two cement companies, both experienced declines of 4.50 percent. At Rs 562, Adani Ports finished with gains of 0.55 percent. After Hindenburg released its report on January 24, all ten of the listed companies had collectively lost Rs. 12.37 lakh crore. Market capitalization for the group as a whole is presently Rs 6.81 lakh crore, down from Rs 19.20 lakh crore on January 24.

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