Lagatar24 Desk
New Delhi, Feb 7: Shares of the Indian conglomerate Adani shot up by as much as 25% on Tuesday, recouping some of its recent enormous losses, after saying it would repay more than $1 billion in loans.
After allegations of accounting fraud were made by short-seller US investment group Hindenburg Research on January 24, the company owned by entrepreneur Gautam Adani saw a loss of value of almost $120 billion.
According to Bloomberg, the rise on Tuesday of Adani Enterprises and many other publicly traded subsidiaries of India’s largest conglomerate reduced the overall loss to about $112 billion.
The group’s capacity to secure more funding to pay off its debts has come under question as a result of the drop. It apparently also cancelled a bond issue last week in addition to a share sale.
To reassure investors, Adani announced Monday that it was repaying early loans totaling $1.1 billion.
Adani Enterprises, the group’s flagship firm, soared as much as 25 percent on Tuesday, with trading suspended three times on the way up.
Even though they had lost more than half of their value since the year’s beginning, they were still up 15% in afternoon trade after transactions resumed.
