On Wednesday, after the withdrawal of the Adani Enterprises FPO (follow-on public offer), the Adani group company’s bonds fell to distress levels. Bonds issued by Adani Green Energy and Adani Ports and Special Economic Zone (APSEZ) were the biggest losers in global markets.
According to business data, Adani Ports And Special Economic The July 2024 Zone or APSEZ’s 3.375% bond fell the most in global secondary markets as it declined 20 cents to 69.75 cents on the dollar. Investment The Grade – The biggest loser in the Wednesday session. Similarly issue four more bonds Adani Ports And special economic zone fell to distressed levels on Wednesday as they fell to 69 cents or below.
Adani Green Energy’s 4.375% bonds due in September 2024 fell more than 12 cents to 66.75 cents on the dollar in global secondary market trade on Wednesday. Not only did a bond issued by Adani Green Energy fall to crisis levels, but it hit 9 cents to the dollar.
some bonds of Adani Ports And Special Economic Zone and Adani Green Energy currently offer returns of over 30 per cent in global secondary markets, far above the average investment grade yield of 4.96 per cent and junk bond yield of 8.14 per cent.
In a dramatic U-turn on Wednesday evening, Adani Enterprises Ltd announced a withdrawal of its FPO value 20,000 crores. The company decided to close the Adani Enterprises FPO despite the bid being fully subscribed for three days from January 27 to January 31, 2023.
Announcing the withdrawal of the Adani Enterprises FPO, Gautam Adani, Chairman, Adani Enterprises Ltd. said, “The Board takes this opportunity to thank all investors for your support and commitment to our FPO. Subscription for the FPO successfully closed yesterday. Despite the volatility in the stock this past week, your faith and trust in the company, its business and its management has been extremely reassuring and humbling.”
In Wednesday’s session on Dalal Street, the share price of Adani Enterprises fell 26 per cent and ended 2,179.75 on the NSE, which is 932.25 per equity share lower than the lower price band of the Adani Enterprises FPO price.
Adani Enterprises shares fall after Hindenburg Research report raising concerns on debt position of Adani group companies from 3.442 2,179.75 each level, a loss of over 36 per cent in the last five straight sessions.
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