Adani Group Companies: Rs 9 lakh crore market capitalisation lost in six sessions

Adani Enterprises Ltd on Wednesday announced that it has withdrawn its Rs 20,000 crore follow-on public offer (FPO) despite full subscribtion on the final day  with help form some big Indian conglomerates.

Bloomberg reported bonds of firms related to Gautam Adani’s flagship Adani Enterprises Ltd plunged to distressed levels after the company pulled a large stock offering, the latest fallout from a short-seller’s research report that accused the group of fraud.

Bonds issued by Adani Ports & Special Economic Zone Ltd and Adani Green Energy Ltd dropped the most in global secondary trading on Wednesday. Some bonds of both of the Adani companies currently yield more than 30 percent in secondary markets, way over the average investment grade yield of 4.96 percent and junk bond yield of 8.14 percent.

Adani Ports’ 3.375 percent bond due July 2024 tumbled more than 20 cents on the dollar to 69.75 cents in investment-grade secondary trading, according to Trace data. The loss was the biggest in global trading Wednesday, while at least four other Adani Ports bonds hit distressed levels, falling to 69 cents or lower.

On Wednesday, Bloomberg reported that Credit Suisse's private bank has halted margin loans on Adani Bonds. The Swiss lender’s private banking arm has assigned a zero lending value for notes sold by Adani Ports and Special Economic Zone, Adani Green Energy and Adani Electricity Mumbai Ltd, Bloomberg said, quoting sources.

The billionaire Gautam Adani-headed group has been in the focus ever since the short-seller Hidenburg Research's allegations against the firm.