Adani Group shares witness steep selling

Shares of seven Adani Group shares fell by 0.13% to 5% after a research firm reportedly said in a report that Adani Group's debt-funded growth plans could spiral into a massive debt trap.

Adani Power (down 5%), Adani Green Energy (down 4.42%), Adani Wilmar (down 3.21%), Adani Transmission (down 1.68%), Adani Ports And Special Economic Zone (down 1.23%), Adani Total Gas (down 0.93%) and Adani Enterprises (down 0.13%) tumbled.

Adani Group is "deeply overleveraged," with the group investing aggressively across existing as well as new businesses, predominantly funded with debt, the research report reportedly cited.

The aggressive expansion pursued by the Adani Group has put pressure on its credit metrics and cash flow, the research firm said, adding that "In the worst-case scenario, overly ambitious debt-funded growth plans could eventually spiral into a massive debt trap, and possibly culminate into a distressed situation or default of one or more group companies," it added.

The group's aggressive plans, most of which have been fuelled by debt, is making the research firm 'cautiously watchful'.

The research firm has, however, reportedly retained the 'Market perform' recommendations on the two Adani Group companies under their coverage Adani Green Energy and Adani Ports and SEZ.

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