For anyone who believed that Adani Enterprises would end the day just two percent lower after being down as much as 35 percent during intraday trade on Friday, is lying.
Such has been the volatility seen in both Adani Ports and Adani Enterprises through the course of Friday's trading session.
Shares of Adani Enterprises ended 2.2 percent lower, while Adani Ports ended with gains of 5.5 percent after also seeing double-digit losses in intraday trading. However, shares of other group companies like Adani Gas, Transmission, Power, Wilmar and Green Energy continued to remain at their respective lower circuit limits of five and 10 percent.
Amidst these developments, two rating agencies came out with their views on the entire saga.
Moody's believes that the adverse developments may reduce the Adani Group's ability to raise capital to fund committed capex or refinance maturing debt over the next 1-2 years.
"We recognise that a portion of the capex is deferrable, and the rated entities do not have significant maturing debt until financial year 2025," the note said.
Fitch rating said that there is no immediate impact on the ratings of the Fitch-rated Adani entities and their securities, adding that no material changes to its forecast cash flow is expected.
At the lowest point of the day, the Adani Group's market capitalisation fell below the Rs 10 lakh crore mark, an erosion of more than 50 percent since January 24.
Shares of other Adani Group entities - ACC and Ambuja Cements also ended with gains of 4.3 percent and 5.5 percent respectively.
Earlier this morning, Adani Enterprises was removed from the Dow Jones Sustainability Indices as an aftermath of a media and stakeholder analysis triggered by allegations of stock manipulation and accounting fraud.
Adani Enterprises Ltd on Wednesday announced that it has withdrawn its Rs 20,000 crore follow-on public offer (FPO) despite full subscription on the final day. According to a Bloomberg report, bonds of firms related to Adani Enterprises plunged to distressed levels after the company pulled a large stock offering.
First Published: Feb 3, 2023 9:31 AM IST
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