Shares of Adani Enterprises Ltd staged a rebound in Wednesday's trade, pausing their five-day downward trend. The stock climbed 8.63 per cent to hit a day high of Rs 1,739.70 over its previous close of Rs 1,601.55. Today's sharp movement in the share price came after the flagship Adani Group firm issued a clarification debunking "The Ken's false narrative on repayment of loans against shares." Stock exchanges, BSE and NSE, asked for clarification from the company a day before.
"The Adani Group strongly refutes the news report published by The Ken, a digital publication, which makes the baseless and deliberately mischievous claim that the Group has not completed repayment of $2.15 billion in share-backed debt," Adani Enterprises stated.
The company also mentioned that it has completed full prepayment of margin-linked share-backed financing aggregating to $2.15 billion.
As per NSE and Adani Group, the pledge position of Adani Green stood at 3.50 per cent, as of March 27, 2023. For Adani Ports, Adani Transmission and Adani Enterprises, the value came at 4.70 per cent, 3.80 per cent and 0.60 per cent, respectively.
The Ken's report raised questions on whether the energy-to-ports conglomerate has actually repaid debt totaling $2.15 billion. It claimed that the Indian conglomerate only reduced the loan amount through a partial repayment to avoid pledging more shares and further action against it by lenders.
In response, Adani Enterprises said all the pledged shares have been released subsequent to the prepayments made.
"As per the present rules, any share pledge or release is automatically reported by system driven disclosure (SDD) mechanism of the depository participant, and no separate filing is required to be made. The same has already been updated and is reflected on the NSE website. However, the BSE website has not been updated to reflect the same," it further stated.
The counter has lost around 56 per cent so far this year.
The listed entities of Adani Group saw a massive market value erosion since January 24, when US-based short seller Hindenburg Research released a report alleging stock manipulation and accounting fraud by the Gautam Adani-led conglomerate. Adani Group, however, denied all the allegations.
The stocks, then, recorded a decent rebound after US boutique investment firm GQG Partners announced a cumulative investment of Rs 15,446 crore in four Adani firms -- Adani Enterprises, Adani Green, Adani Ports and Adani Transmission.
On the technical front, the stock was last seen trading lower than the 5-day, 20-, 50-, 100- and 200-day moving averages. The counter's 14-day relative strength index (RSI) came at 43.12. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 129.62.
The scrip has a one-year beta of 1.80, indicating high volatility.
Meanwhile, Indian equity benchmarks traded higher in afternoon deals today, led by gains in automobile, banks, financials, consumer goods and metal stocks.
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