Market regulator Securities and Exchange Board of India (Sebi) has sought details of all ratings of local loans and securities of the embattled Adani Group’s companies from credit rating firms, said a report on Wednesday.
The rating companies were told last week by Sebi to share the information, which would include all outstanding ratings, outlook, and possible updates from any discussions with officials of the business group that is reeling from an US short seller’s scathing report, reported Economic Times.
“Sebi is probably trying to ascertain whether the sharp fall in stock prices of several Adani companies would have any bearing on the liquidity positions and the debt repayment capability of the borrowing companies… Most of this information, however, is in public domain,” a person aware of the communication from the regulator told ET.
The report came on a day when Adani firms’ stocks had their worst day in two weeks as investors lost an additional Rs 51,000 crore on Wednesday. Adani Enterprises’ stock fell 9.55% while Adani Ports’ shares fell 4.66%. Shares of Adani Green, Adani Power and Adani Transmission fell 5% each.
The stock fall continues despite the Adani Group firms making prepayments to mutual funds. Over the last two days, the prepayments have been done to SBI MF, HDFC MF & ABSL MF for February dues related to Commercial Papers. And, it has also made announcement of prepayment for March dues.
A January 24 report by Hindenburg Research alleged the conglomerate improperly used offshore tax havens and manipulated stocks. The report also flagged concerns over its high debt levels. Adani has rejected the concerns and denied any wrongdoing. Seven listed companies of Adani have together lost over $130 billion in market value since the report got released.
Rating agencies like S&P and Moody’s have changed the outlook on some of the Adani companies from ‘stable’ to ‘negative’.
“Since it’s close to a month since the Hindenburg report, it possibly cannot be a material event for any rating action. Under the circumstances, rating companies would keep track of other parameters, like a further fall in share price, or other developments for any action,” a banker told ET.
Adani Transmission and Adani Green Energy told bondholders that they will announce debt refinancing plans in a few weeks.