Ambuja Cements, ACC shares plummet up to 20% as rout in Adani group stocks intensifies

Shares of Adani group cement companies Ambuja Cements and ACC plummeted up to 20 per cent in Wednesday's trade, as rout in the Adani group stocks intensified, with Adani Enterprises sinking as much as 30 per cent in trade today.

Ambuja Cements fell 20 per cent to Rs 320.80. ACC, on the other hand, declined 11.13 per cent to Rs 1,750. This is amid a Bloomberg report suggesting that Credit Suisse Group AG has stopped accepting bonds of Gautam Adani’s group of companies as collateral for margin loans to its private banking clients, a sign that scrutiny of the Indian tycoon’s finances is growing after allegations of fraud by short seller Hindenburg Research.

The Bloomberg report suggested that Swiss lender’s private banking arm has assigned a zero lending value for notes sold by Adani Ports and Special Economic Zone, Adani Green Energy and Adani Electricity Mumbai, according to people familiar with the matter, who asked not to be identified discussing private information. It had previously offered a lending value of about 75 per cent for the Adani Ports notes, one of the people told Bloomberg.

Other banks continue to lend against Adani debt, the Bloomberg report suggested. At least two European private banks kept the level unchanged as of now, with one of those offering lending of between 75 per cent and 80 per cent for Adani Ports dollar bonds, according to the people. A potential trigger for lowering could be any rating downgrade, the Bloomberg report suggested.

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