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Most Adani group shares ended lower on Tuesday after reports that the conglomerate was “deeply overleveraged” and that the group was mostly using debt to invest aggressively in existing as well as new businesses.
Shares of Adani Power fell 4.99 percent, Adani Wilmar fell 4.73 percent and Adani Green Energy fell 4.15 percent on the BSE.
Adani Power and Adani Wilmar hit their lower circuit limits during the day.
Also Read | ‘Deeply overleveraged’ Adani Group’s aggressive debt-fund growth: Report
Also, Adani Enterprises fell 0.93 percent and Adani Ports and Special Economic Zones fell 0.32 percent.
However, Adani Transmission jumped 3.23 percent and Adani Total Gas rose 1.73 percent.
In the broader market, the 30-share benchmark BSE rose 257.43 points or 0.44 percent to settle at 59,031.30.
India’s richest port-to-power-to-cement conglomerate Gautam Adani’s “deeply overleveraged” and the group mainly uses debt to invest aggressively across existing as well as new businesses, CreditSights, a unit of Fitch Group, said Tuesday.
In a report titled ‘Adani Group: Deeply Overleveraged’, CreditSights said, “In a worst-case scenario, an ambitious debt-financed growth plan could eventually become a huge debt trap, possibly culminating in a state of distress or default of one or more group company.”
Starting out as a commodity trader in the late 1980s, the Adani group has diversified from mines, ports and power plants to airports, data centers and defense.
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