Reports of a $3 billion loan from a sovereign fund are denied by Adani Group

According to a Bloomberg story, the Gautam Adani-led conglomerate has clarified that rumours that the Adani Group has obtained a new $3 billion loan from unidentified sovereign funds are untrue and were issued hours after the reports were first published.

Details about Reports of a $3 billion loan from a sovereign fund are denied by Adani Group

According to a Reuters story, the Adani Group has informed its creditors that a $3 billion loan from a sovereign wealth fund has been secured. The sovereign wealth fund’s credit line could be increased to $5 billion, according to two persons with knowledge of the situation who spoke to Reuters.

“We categorically refute this unfounded assumption. That is completely inaccurate and false, a source told Bloomberg.

By the end of March 2023, The Adani Group stated that it intended to prepay or repay share-backed loans totaling $690-790 million. After Hindenburg Research published a damning study accusing the Adani Group of stock manipulation and fraud through a flurry of shell companies, the company came under fire. The market capitalization of the Adani Group decreased by 60–70% when the report was published on January 24.

Seven listed Adani Group companies have seen their market value decline by more than $140 billion since January 24. Adani has denied all misconduct and rejected the accusations.

The public Adani Group stocks have experienced modest price growth since Tuesday. For the first time ever, all 10 of the traded equities closed higher on Wednesday.

In spite of the current decline, just one Adani stock has held its ground. For the fifth session in a row, Adani Ports and Special Economic Zone Ltd. (Adani Ports) maintained its upward trend. The price of Adani Ports’ stock increased today by 1.61% to close at Rs 602.15. Since February 3, 2023, when the price of the counter dropped to Rs 394.95, it has increased by 52.46 percent.

Compared to the two-week average volume for Adani Ports, which was 9.54 lakh shares, a total of 19.20 lakh shares were traded on the BSE today. The counter’s turnover was Rs 116.28 billion, and it had a Rs 1,30,072.77 billion market capitalization (m-cap).