Adani Enterprises shares extend fall for 5th straight session, tank 9% today

Shares of Adani Enterprises fell sharply in Tuesday's trade, extending their fall for the fifth consecutive session. The stock dived 8.72 per cent to hit a day low of Rs 1,573 over its previous close of Rs 1,723.30. Today's sharp movement in the share price came after news agency Reuters, citing sources, reported that the Indian conglomerate was seeking to renegotiate terms of outstanding loans worth $4 billion taken last year to buy cement firms ACC and Ambuja Cements.

The report claimed that the Gautam Adani-led group has begun negotiations with lenders to extend the tenure of its $3 billion bridge loan to a period of five years or beyond from the existing 18 months. In addition, it is also reportedly seeking the conversion of another $1 billion mezzanine loan tranche, which currently has a maturity of 24 months, to senior secured debt with a repayment schedule extending up to five years.

The conglomerate bought the two cement companies from Holcim AG for $10.5 billion in May last year.

Around 6.36 lakh shares changed hand today on BSE, which was higher than the two-week average volume of 3.94 lakh shares. Turnover on the counter stood at Rs 104.21 crore, commanding a market capitalisation (m-cap) of Rs 1,81,921.38 crore.

At today's low price of Rs 1,573, the counter has recovered 54.66 per cent from its 52-week low of Rs 1,017.10, hit on February 3, 2023. That said, it has plunged 62.45 per cent from its one-year high of Rs 4,189.55, a level seen on December 21 last 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 37.79. 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 139.47.

The scrip has a one-year beta of 1.79, indicating high volatility.

Meanwhile, Indian equity benchmarks traded lower in late deals today, dragged by metal, technology and automobile stocks.

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