Ratings agency Fitch has said that two Adani Group subsidiaries are exposed to heightened contagion risks as a result of governance weakness at the conglomerate’s sponsor level. Adani Transmission Limited and Adani Ports and Special Economic Zone are prone to risks which could affect financial flexibility, said Fitch. The report further added that this could affect financial flexibility, if not addressed properly.
At 9:47 am, Adani Transmission was quoting at Rs 965 on the BSE, lower by 5 percent. Meanwhile, Adani Ports was trading higher by nearly 2 percent at Rs 609.
The Adani Group is back in fire-fighting mode after media reports called into question the Indian conglomerate’s ability to repay debt, reviving a selloff in its stock.
Adani Ports & Special Economic Zone Ltd. fell 5.7% to close at 593.40 rupees on Tuesday — lower than the price investor GQG Partners paid to buy a stake earlier this month. It plummeted more than 9% at one point in the session. The sharp selloff in all Adani stocks erased about $6.2 billion from their combined market value, the biggest decline since early February.